Cool your heels on Vical Incorporated (VICL)
Today's Financial News - Posted August 31, 2009
With Sinovac Biotech Ltd. (AMEX:SVA) rising another 20%-plus today, we’ve decided to not establis a stop loss on Vical Incorporated (NASDAQ:VICL)
by J. Christoph Amberger
Baltimore, MD — TFN: Swine flu pig-in-a-poke Vical Incorporated (NASDAQ:VICL) continues on its way up, packing on over 6% today.
We recommended it to TFN eNews readers as part of our Best Swine Flu Vaccine Stocks on August 20. HSC Members have held it since August 6. (In this case, being a member of Hot Stock Confidential didn’t translate into any material advantages over just following our free advice… gains recorded on both open positions portfolio indicate 35% and 33% — other than the fact that HSC members took 51% and 31% on VICL in previous months.)
You may have noticed, we’re cautious people.
While we believe the picks we present to you and our premium service members often have the potential to create triple-digit gains, we know that market volatility can turn a substantial gain into an unpleasant loss in a matter of hours. That’s why we like to use stop losses to lock in as much profit as we think we can get away with.
But such caution comes at a price in a see-saw market: On August 28, we took 30% gains on another Swine Flu pick, Sinovac Biotech Ltd. (AMEX:SVA). Told you, we’re cautious! Today, however, the stock jumped another 23%.
It’s a risk you take when you take profits. It’s just like picking a line at the supermarket checkout counter: No matter what line you chose, the one you just left will suddenly move faster.
We discussed this at length at the office today. In the case of VICL, we decided to throw caution to the wind, keep our fingers crossed, and not establish a “wealth preservation” stop loss for the stock.
At least for the time being! We’re prone to change our mind any minute… after it hits 50% gains maybe.
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