No Control? Check out this chart of Control4 Corp. (CTRL) (August 09, 2017)
Today we are trying to get some control here of Control4 ( NASDAQ:CTRL ). This is a smart house company, they don’t make the houses, they make the smart stuff. I actually have some of their stuff in mine. And to be perfectly honest with you, it isn’t that smart. There is a lot of stuff that can go wrong with it. I am a little old school, that is just me.
Here is the thing: The stock is actually working pretty well. Here is what I like about it: We see the long-term uptrend, but it is taking quite a while here to form bases throughout this move, 6 months here. It takes this stock a long time to kind of gather itself. It is CLOSE to the all-time high. Though it is so far back into 2014 that it doesn’t really matter. When I look at this stock I see $25.00 as essentially the all-time high; just because it is too far away in time for that last high to really matter. So this is the one that I care about, and this is the level of support that I care about.
This one, just over the last couple of days, and then this one just a little bit below 21.00. Here is why: The company reported earnings right here, on this big high volume day, a big red day. Lots of selling, lots of distribution, but the stock is up ABOVE the opening print. The deal was the company actually beat earnings but they guided lower. To me that is a reason to sell the stock. Okay, great! Thanks for last quarter’s earnings. But what I am really concerned about, what I really care about is next quarter’s earnings. And you are telling me you are not doing that great, and so I am going to go ahead and sell the stock. Well, so much for my trading theme because the stock is actually moving up.
If we look at the hour chart you can see the stock was up here. It fell back in just a few hours, and then since that time has not really looked back. So what that is telling me is, that this is a stock that is under accumulation. While it is a little choppy here, it is a little wild, I won’t lie to you, I think this is a good buying opportunity for this stock. You MAY have to wait for a bit. But you know what? That is okay with me. Back here in April the stock was trading at 16.00, it has gone up as much as 25.00. I wouldn’t be buying this stock at 23.35 and expect it to be at $40.00 tomorrow. That is not the trade.
The trade is, if you are looking to get into this stock at a good price, at a good entry. You are probably not going to get a better entry than this; in part because it is after a pullback, the pullback is actually fairly shallow. The stock ultimately went down in response to earnings and since that time is starting to move up, so it is like you got the bad news behind you. The stock is moving higher so you can keep a fairly tight stop. Not super tight but tight enough, right about under $22.00 and I think that will get this thing done.