Think this stock is too expensive? Think again! Here’s my take on Roku (ROKU) (December 15, 2017)


Let’s look at Roku ( NASDAQ: ROKU ). This was a really good stock here. It made a lot of money on this last breakout, a really nice move in a very short period of time. Then since that time the stock has been drifting sideways. It is one that I have had on my screen; I look at this every day because stocks that move like this, sometimes you will get this kind of move and then, “Okay, well that’s it. That’s it, that was all, that stock is now dead.” Kind of like Blue Apron, something like that; I don’t know if that thing is even trading or not. It is blue as in I’m blue about owning it. You get this kind of thing here. But a lot of times this stock just continues to work. I think it is probably heavily shorted but I don’t know for sure. I just know that the stock printed a new high on Friday and I bought the stock. I think a lot of people in our forum are still long this stock.

Today, on Friday here, we got the breakout on heavy volume. I don’t think it is too late for you to buy this stock. You have to understand it is really volatile, obviously hello, 21.55, it is volatile. But if you are buying this stock now you really have to look at this as having say, 15 percent of wiggle room so you take a small position. And then once the stock starts breaking out, let’s say you are buying here on Monday, and then if the stock moves above 55.00 then you add to that position. And you are adding to that position because you know the only way the stock can hit $55.00 is if there is really, really strong demand for the stock. If there is not strong demand for the stock you don’t want to own it because it is already extended. So why own the stock that nobody else wants?

Anyway, you take some stock here; wait for the stock to tell you, “Yes, I am in really strong demand.” Buy it at 55.00, a little bit above that and then ride this thing even higher. By the way, the stock traded almost 17 million on Friday, the float is 15.5 million. So this thing traded the float on Friday. That is a pretty powerful stock; don’t ignore this kind of price action. Again, it is a speculative trade. You could lose your dough, but the way this is trading I think you are going to make some money on this.

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