Digital Power Corp (DPW)

[PennyStockTrader2]

I started my reply to you like this ...

I am definitely NOT holding this thru then, I am BUYING it tomorrow.

Seriously, but thanks for the heads up about earnings, I forgot about that. As mentioned, the insiders clearly are NOT selling but the opposite including this last rally (see latest Form 4 for purchase of a 1000 shares, granted it's trivial, but it sends a message in my opinion). I think there is a lot more than meets the eye that we are not aware of. One way to look at it is if you are in for longer timeframe, I think you have nothing to lose. If for a shorter or variable timeframe, then there could be risk of tying up money, but, at this price, and with that purchase order, I simply cant see it going back down to 60, but then again, I couldn't see it going back down to 78 the other day and its only a few cents from that now.

So, what I think I'll do is be ready to buy on any dips below 80, regardless of the reason. I have clearly made the mistake of over investing in stocks multiple times, and I don't want this to fall into that pattern, but I do feel very very comfortable on the long term prospects here.

And again, a dip to 60 would be along the lines of the average low range for this stock since 2001 with the exception of last summer (not adjusted to inflation). And that's without news like we just had. I simply think the downside is limited at this point. Not sure what else to say.

That said, in hindsight I made the mistake of basically not selling into the rally (except a trivial few thousand shares at the peek, better than nothing I suppose and some at 1.35) AND I have made that mistake before with other stocks, but I will NOT repeat that mistake again. In hindsight I might have sold a quarter of my position in the 1.60 - 1.80 range, and bought most of it all back around a buck (not knowing it would continue to go down to 80 but that would not have bothered me at all) and the remainder between 80 and a buck. So as a plan, as it rallies to say 1.25, 1.50, 1.75 and 2.00 then I am a seller, not a lot persay, but I am a seller, its just the prudent thing to do is what I have learned - the stock does not always price to what it's potential is which is what we have just learned on this event. Then if it pulls back enough from any of my sells, I might consider buying back in.

Here's the 16 year chart: