Stock Pick–June 13, 2007
Wednesday, 13th June, 2007
Someone left a comment on my last stock pick, questioning the selection because the stock was so thinly traded (low volume). He makes a good point. I bought it after an unusually high volume day for the stock–Parke Bancorp, Inc.–and it has only traded a few thousand shares per day since, on average. I’m going to hang onto it (and, indeed, it is up 4% since I bought it 3 weeks ago), but I was glad to have this critique, and in the future I will be paying more attention to the average daily volume and not just to what occured on the day I ran my screen.
On the other hand, this week I’m still going with another stock–Conrad Industries (CNRD)–that tends toward low daily volume and, consequently, more risk than some of you may be willing to take. Hopefully, trading volume will increase as more people “discover” it.
Happy investing!
