Pitchsone – Wrong or Right?

Recommendation: Holding, but probably selling

Last week I made Pitchstone a strong buy, because it was approaching it’s yearly high of $2.42 set on March 23, 2006, and I like to buy stocks when they make a new high after a period of consolidation.

The problem with my thoughts last week, of course, is that PXP.TO had not actually made a new high; it was just approaching one, so my buy recommendation may have been premature. It closed last week at $2.25, and closed on December 1 at $2.11, although it did actually make a new high of $2.45 on November 27, 2006.

What does this all mean? I wish I knew. I haven’t sold yet, because it was relatively stable during the end of the week, but if we get any further down-ticks this week I will have to assume that my buy point was wrong, and I’ll sell and cut my losses. One or two days does not a long term trend make, but a few more days and we should have a better idea of what PXP.TO is doing.