Try this gentle squeeze on Sprint (S). (April 01, 2013)
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I’m Dan Fitzpatrick at Stock MarketMentor.com and it’s April Fools’ Day, this isn’t an April fool’s trade though. Look, Sprint ( $S Sprint Nextel Corporation ), “S”, trending up, volatility squeeze here. The stock only went up four cents; that’s because it’s a $6.25 stock, so four cents is like two cents short of 10 percent. The thing I like about this trade, other than the fact that the stock just continues to move higher is, first of all it’s a low-dollar stock, $6.00, so you can own a bazillion shares of them and feel like, hey, who wants to be a millionaire? But also you look at the weekly chart and this is a squeeze that’s been going on for a while and stocks up, you know, 52 week high, and it just keeps drifting. So this is not really a high maintenance trade, this is a stock that you can just kind of take, and don’t go overboard, don’t load the boat and go 100 percent Sprint ( $S Sprint Nextel Corporation ) because then the stocks going to fall 10 cents, and now you’re going to be hitting the eject button; so don’t do that. This is a stock I think you can just buy and hold, the big whopping dividend is, oh, I know, they don’t pay a dividend. So there are other telecom stocks that are doing better because of the dividend. But I think this has a great potential, it’s got great potential for capital gains here, so I would just suggest staying long this one. Now members I want you to get over to the Strategy Session, I got another telecom stock with a pretty hefty dividend and I’m going to show you how you can probably get 30 percent out of that puppy this year, so look for that, take notes and we’ll see if we can’t make some money together. Okay I’ll see you next time. Free Chart