The great escape!
I can’t remember exactly why we bought ASTI the first time but I remember hearing how it was going to be the next big solar tech company. I then watched it steadily decline and decided to sell the shares I had. It was only a few hundred shares so the loss was negligible. I continued to watch as the price bumped along the bottom and when the news came that China was increasing its solar manufacturing by leaps and bounds, the price dropped even further. It became a penny stock basically, so I thought buy again, solar is increasing all the time. It has to go up at some point. I bought $3000 worth at $0.90 and the price continued to fall until I was at -43%.
Now this is where I get a little vindication. Every night (Tokyo time), I watch the bell and cycle through the joy and misery that is the daily fluctuation of the market, while my wife has to listen to my “Oh, shit” and “Woohoo”. On the very worst days, the stomach aches. She always tells me, “Don’t watch over it.” Two weeks ago, I was at -38% on ASTI (nearly as dismal as my Apple return). But then they announced that China would face tariffs on solar exports because of price fixing. The shares of ASTI jumped 44%. I couldn’t believe it!
The next day, ASTI opened their first retail outlets and the stock jumped an additional 31%. I had had enough of this bumpy ride so I dumped my shares at $1.31. This more than covered all my previous losses and made me a good amount of money. Over the past few days, the price has stabilized back at around $0.80. Victory, I told my wife, “Now you see why I watch”. She just rolls her eyes.
I was so excited. I see these crazy spikes in other stocks and I always wished I could buy on one of the 20% drops and then sell as it stabilizes but I have never been in the right place at the right time. Now, this strategy is by no means my primary strategy (I much prefer to buy long term large cap companies on dips and crashes) but I feel like playing with small cap stocks not only allows these simple victories, it also increases my overall knowledge of the market and keeps me interested in the world of finance.