Thursday, 19 July 2018

Buy Alert on AAOI At $43: Buy Before the Friday Short Covering

Applied Optoelectronics (AAOI) was one of our top plays of 2017. Last May we released our report "AAOI: Eight Reasons To Expect This Tech Unicorn To Double By The End Of 2017" when it was trading at $56 with the following prediction:

"AAOI has moved from $8 to $56 over the past 52 weeks but we think this rise will continue. We believe that $60 is possible as early as next week, $80 by mid-summer and $100 or more by the end of the year, providing a near double for the people who have showed up late to this party in early May 2017."

That $100 prediction was hit within a couple of months. The stock cratered after that all the way down to the $20's, but now that it has recovered to around $43 we are comfortable with sending out another buy alert. At that time we had less than 200 followers to our blog. We are up to 622 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well. If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

Another key to our success and growth in popularity was our ability to find a consistent trading pattern in AAOI. Read our write up "Unlocking The Secret To Trading AAOI: Buy Before The Friday Short Covering" to see details of the consistent pattern. If you bought the dip on Wednesday or Thursday morning, there is a good chance that you made money on Friday thanks to short covering. We think that a similar pattern in occurring for this week.

Disclosure: We are long AAOI

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