Thursday was a great day on the markets overall.

With lots of buying entering the markets, many stocks are shooting up (some without true merit), but opportunities exist for all to make some profitable trades these days.

Wednesday I talked about the jump in Nortel stock. I did not get in for myself but did manage to snag a 30% gain for my parents. At that time, I did mention that Thursday should produce another rally day for that stock and it easily did.

Initially there was no substantial reason for the jump in share price as it was a slow but steady increase. But towards the end of the day, after a 75% jump today, it was announced that Nortel sold a division of its company, thereby freeing up money to pay off creditors and also signed a pact with Siemens. These are great news as Radware (a division of Nortel) was something that many did not expect to get sold and today that day came. A great thing for me is that a couple of months back I was caught stuck with this stock and a few thousand shares that were deemed worthless. And today, they are back to even!

I told many at that time when the stock tanked that over time, Nortel had a chance to bounce back and unless you needed the money right away or wanted to claim a loss to offset any gains, there was no point in selling. I’m glad I for one took my own advise.

Okay, back to Thursday, today I manged to jump in on Nortel (NRTLQ) right at the open with a pre-set market buy order. I got lucky in the sense that it was a $0.15 price for 10,000 shares. Since I was busy all day today, my sell price was also pre-set for $0.20.

Total profit on Nortel today: $500.

This could have been double if I set a higher sell price as the stock really did take off later in the afternoon, but with a 40% jump on the previous rally, I felt that 30% would be attainable and would keep greed from altering a profit opportunity.

Here is the summary for Thursday:

News for Friday:
Shares of solar companies soared Thursday after the Chinese Ministry of Finance said on its Web site that it will offer a subsidy for solar energy. Link.

Tibco Software first quarter profit up slightly, sales dip. Link.

A stock to watch for me on Friday is (VVTV), there is a lot of buzz on this stock right now and its actually jumped on the afterhours market. Basically, its trading too low and the company is trying to sell it self for anywhere between $1-$2/share and also has a lot of cash reserves and finally, lots of insiders are buying into the stock while the company is buying back 10% of outstanding shares. It was up from $0.40 today so is up significantly. If there is a drop on Friday, I will pick up 2000 shares for a small profitable long position until the company is bought out.

Happy Investing!

Aman, MBA

No related posts.