Even the name of this company is funnyJ No one knows of it. It’s not well covered by institutional traders, and has good volume, but not great for the size company that it is.
It has a long history, some bad. It’s recently cut back 50% of its workforce, and is just starting to rehire.
But first we’ll say this: any increase in construction, any “fixing” of old buildings just sitting there (much of GM, Chrysler, old Wal Marts) et al, this company is the expert worldwide.
Again, a true definition of a value stock.
Above is a setting for a Pnf (Point and Figure Chart) that takes the noise out of the chart. All you see is supply and demand.
Floyd has been following KHD for about a year now, and has recommended it within our speculative portfolio several times, as an unusual swing trade. For the past six months I’ve simply bought KHD on down moves, and sold it for $1.00 per contract on up moves. You can pull up charts to help you see the recent pattern of slight sell off, and buy up, as this stock builds steam again.
We consider KHD a buy in our speculative portfolio in two ways:
1. 1. Buy inventory for long term (three years) at under 9.50.
2. 2. Buy inventory on downturns to compliment #1, and also to watch the stock for swing trading it for $1.00 per share as it rises.
We will later recommend a stop loss of 25% trailing stop, but let’s allow buys to be made over the next few weeks to gain an average cost. It’s a value stock extraordinaire.
