Listen to this discussion of stock movement up and down. Try to listen to the dialogue at least once without reading the text. If you have troubles understanding, or to check your understanding Click on ‘Show Dialogue Text’ to read along with recorded selection.
Good afternoon Ellen, I hear TWIS Corp is a real winner. Could you tell me a little bit about the stock?
Sure Jack. Well we purchased 24,000 shares at $3.78 a share back in April.
Wow, TWIS is trading around $22 this morning.
Yes, that’s right. In fact, I just unloaded 15,000 shares.
Why did you do that?
I think it’s going to be trending downward. It just can’t sustain these multiples.
Really, would you like to share that info? Perhaps it’s time to short the stock.
The price-earnings ratio are off. The P/E ratio is 42.85. They can’t sustain that.
I’m glad I asked. Any other reasons to get out now?
I’ve just read a report on a number of IP issues that are brewing.
Ouch, that’s not good. IP licensing is what they do best.
That’s why it’s time to sell. I predict a sell-off in the next few weeks.