SDLP sure opened lustily out of the gate this morning. By early afternoon I was tempted to jump back into the fray but then I noticed things seemed to be cooling off a bit. Towards the last hour or so it became increasingly obvious that day traders were having their way with this stock and I decided it might be best for me to take a seat to the rear of the bus and avoid the bust.
Sure enough, while the stock rose nicely, it didn't exactly stir anybody's imagination. And if, as any experienced trader will agree, the third day of consecutive gains should occur tomorrow, chances are extremely likely that some of SDLP's restorative moments will probably fall away.
And then there's the obvious: The company is headquartered in Britain and nobody knows how things will work going forward. Not discounting today's positive news, by the way, but the PR was faulty to say the least---no boundaries or limits were announced. There's no way to accurately value the contract terms. Terrible mismanagement of new dissemination in my opinion.
Still, SDLP is hardly dead in the water and I'll probably jump on board soon. Something closer to $5 would be a logical target, given that a frothy market always retraces to earlier roots respected for solid footing.
