PPR - MLNX - a study on a BGU

Published : April 26 2012 at 9:59 ET

MLNX gapped up 27% on 4/19/12 on strong earnings. It then proceeded to climb the rest of the day, finishing the day up 52%. This was an easy one to skip given its prior sloppy action where it consistently violated its 50-day moving average. That said, buyable gap ups often change the character of a stock. Since MLNX has pulled back close to the low of its gap up day, the risk in buying here is less. One could allow for 1-2% porosity under the low of the gap up day as their sell stop. That would mean a probable maximum risk (not including any slippage) of -5.1% from where it is currently trading at 56.8. MLNX overall rating 98.

This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.