Our new hosting site is ready, so all future posts (unless further notified) can be found at http://thedrummondreport.com/ . It is confusing to many readers to have two sites with the same content, as well as time-consuming for the Capt., so we hope our transition to our new host will not cause any inconvenience on your part.
Our new host permits extra “add-ons” such as videos and other commercial content which we think will improve your success, so this is the main reason we are going with it.
Our post on “Buy to Close one-half of our short strikes at 1405″ did not post on thedrummondreport.com site when we made our first adjustment around 1 pm today. This post should have appeared before “Sell to Close an equal number of long strikes at 1410″. Somehow, the upload did not go through, but it did appear on our WordPress.com site (the one you are reading now).
If you did not make the trade, then you are fortunate for not placing it since the SPX closed below our short strike at 1405 by about one point (Now that was too close!), giving you a full 7% profit on our two-day trade!
For those of you who “played it safe” as the SPX inched closer to our short strike late this afternoon (yep … the Captain included!), we suffered a 2.28% loss on this trade.
To my faithful First Mate, Josh, who stood his ground, never wavering against doubt, faithful to the 4 pm “dong” of the market’s close, gallantly fending the fears of utter loss and abandonment by the crew, may I say … inexperience has its luck! You’ve bagged a 7% profit on our trade! (I’ll see what I can do about that extended shore leave you’ve been hinting about.)
All in all, we learned something this week: Markets can be irrational. With the bad European news we received last night, along with the less than expected economic growth numbers, the S&P held its ground above the 1400 mark while briefly touching 1398.
We paper traded an Iron Condor on Wednesday at the 1415 and 1350 levels at a 90 cent credit. In hindsight, we should have gone live with this trade.
If our Bear Call had filled on Wednesday, we would have been ok this week; but figures do not lie, and captains have to stand with the truth, so we will record this week at a 2.2% loss (excluding commissions).
We’ll be looking for another trade next week, perhaps tweaking our strategy a bit.
Have a pleasant weekend everyone!
Sell to Close the 1410 strike. Sell ONLYthe same number of contracts that you bought to close the 1405′s!
The SPX is approaching our short strike, so we will Buy To Close one-half of our short 1405 strike. (We got a debit fill at .90.) Although this is a debit trade, it is being placed for safety reasons.
See our post on April 26, 2012.
VectorVest is one program we use for stock analysis. (More on it in a later post.) Currently, VectorVest has a universe of 8.395 stocks in its database; all are rated for value, safety, and timing. As of yesterday, their Top Five Stock picks ranked according to their VST system are:
1) Terra Nitrogen TNH
2) Apple, Inc. AAPL
3) Top Image Systems TISA
4) American Vanguard AVD
5) Acorn Energy ACFN
We bring these to you so you can do more study on them. Our favorite, as you already may know, is Apple.
Top Image Systems, Ltd.
I’ve done some study on Top Image Systems and I do like the company. The stock was up 4.01% today and is up another .55% afterhours. Here is a business summary of TISA from Yahoo:
Top Image Systems Ltd. develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees. Its solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. It offers eFLOW Unified Content Platform that provides architectural infrastructure for its solutions. The company also provides eFLOW Smart, an automated classification engine that captures, recognizes, understands, and classifies unstructured documents from source entering an enterprise; eFLOW Freedom that handles semi-structured documents, such as supplier invoices, purchase orders, shipping documents, and checks; and eFLOW Integra, which enhances data capture process from structured predefined forms. In addition, it provides eFLOW SharePoint Solution, which enables document classification and metadata automatically captured from scanned documents; eFLOW Digital Mailroom Solution that classifies and sorts documents in various languages entering the organization and combines them into a single digital workflow; eFLOW Invoice Solution understands the content and layout of invoice and offers integration to SAP and ERP platforms. Further, the company offers eFLOW Forms Classification Solution that extracts information from various forms and transfers it to the system used by the enterprise; eFLOW Banking Platform that enhances business processes by serving as a gateway for information entering the bank in paper and electronic forms; and mobile banking solutions. Additionally, it also offers eFLOW solutions to various private and public sectors. The company sells its products through a network of value-added distributors, systems integrators, original equipment manufacturers, and partners in approximately 40 countries worldwide. The company was founded in 1991 and is headquartered in Ramat Gan, Israel
And here is a chart of its upward trajectory:
Top Image Systems, Ltd.
Will it keep moving? We think so. The relative strength keeps rising which is always a good sign. On April 17, buy volume was over 1 million shares, which portends the big boys are buying it. Vectorvest has it fully valued at $4.98 per share and at average safety. You can read more about TISA on http://www.documentboss.com/blog/business-leader-interview-dr-ido-schechter-ceo-top-image-systems as they interview Top Image’s CEO.
TISA is a small company with big prospects. Throw-in a stock price under $10, as well as one that is under-the-radar (like Intertape Polymer), and we think TISA can keep sailing along.