PAR — buy point?
by bigbrain | March 4, 2021 12:56 pm
Hello,
Wondering if anyone has thoughts on a good entry point for Par — Travis’ last thoughts on this were “nibble around $35” — is this still the case?
Source URL: https://www.stockgumshoe.com/2021/03/microblog-par-buy-point/
His judgment call to “nibble” at $35 goes back to Oct 2020, which was very likely correct as that was around the price range that the stock was in some 5 months ago. However, PAR has done quite well since, doubling up until this current brutal correction. Looking at its chart, PAR often follows a “head and shoulder” pattern and seems to be completing the right shoulder just about now. So in my biased opinion (since I like this stock and am getting somewhat antsy waiting for it to turn back up), I would consider rebuying in the $69-ish range.
However, a saner, more disciplined move would probably be to repurchase somewhere in the $61-ish range. Why? Because there was a gap in price last June 12-13 in this range. In technical analysis, gaps tend to fill.
Thanks bunion132! Appreciate the insights. Was thinking $65ish…
If I go with math and the likely numbers for this year, the highest number I can pitch without feeling a little foolish is about $60 or so. If I go with what I expect Singh to build over the next five or ten years, I can be a lot more expansive.
But this is a volatile and lightly traded stock, it’s pretty small, and the growth won’t show up as dramatic on the top line for a little while… so you really have to be able to stomach a 50% drop. It could also soar to $100 on great news about a huge client signing or a major acquisition, or perhaps even a deal to divest the govt. contracting business, one never knows. I feel very optimistic about what they’re building, but current prices are not without risk.
Thanks Travis, I appreciate your response. I went with my gut and resisted purchasing! Added to my AMD position on the dip instead!
Hope it works out for you!