Is CTRP at a buy point? Sure — here’s two of them.
Discussed in this article: Ctrip.com International Ltd. ( $CTRP )
I want to look at Ctrip ( NASDAQ:CTRP ) here. The stock is in sideways consolidation here, it’s actually a really, really good buy point, right at the 50-day moving average. The reason I say this is at a good buy point is, it’s low risk.
You see this stock trending sideways, and it’s in this volatility squeeze close to the 50-day moving average, which I like because then any breakout tends to have further upside potential. I want you to be careful; this stock has basically doubled since the first of the year.
Now a lot of other Internet stocks have done a heck of a lot better than that, but I think this one works; it’s a Chinese Internet company, as long as the stock stays above $51.00 or so, I think this is an okay stock to own. If it does start to break out say above 60.00 then I’d say this squeeze has led to a pop, to a volatility pop and the stock’s going a lot higher.
Now here’s the thing, if you’re saying, “Okay I’ll wait to buy at 60.00.” Well that’s $5.00, that’s $5.00 above where the stock is now. So if you want to take a position in Ctrip ( NASDAQ:CTRP ) this is a good time to take it, and then if and as the stock starts moving higher, then you can build your position, but you’re building it from a point of profitability as opposed to averaging down because you bought it at the wrong time.