…Hansen Natural (HANS) has been one of my best holdings over the past eight months. I originally picked up shares last May above $66 before the most recent 2-for-1 split. I told the entire community that “stocks that seem high to one investor may seem low to another”. This wisdom held true as the stock easily moved up through the $60-$100 range within a couple of months. The stock showed some red flags and stalling action near $100, so I sold my position and advised everyone to do the same before the stock dropped out of the $90’s (this was in July, 2005). The stock corrected over the next 14 to 15 weeks as I keep it on my back burner since it didn’t violate any long term moving averages such as the 200-day. It then broke out of this four month base in late October and I again grabbed shares and touted it as a $60-$100 candidate for the second time (since it split 2-for-1).
I placed it back on to the MSW Index on November 5, 2005 at $57.63 and said that it had a very good chance to make a second $60-$100 run this year. Pre-split adjusted, I was buying back into the stock near $115 per share but I still thought it presented a great buying opportunity when looking to the weekly chart. The investors that thought the stock was too high in May at $66 probably thought I was crazy to buy back in at $115 (pre-split adjusted).
Over the past two months, (HANS) has made great strides and has again completed the $60-$100 run with a powerful move today. My physical stop is placed at $89.89 but I am going to raise this stop slightly below $95 so I can guarantee myself a 60% gain minimum. It will remain on the MSW Index until it violates any sell rules or support areas even if I take my profits off the table. Without the split, today’s shares are worth over $200 from my first buy last May above $66 (a total gain of 203% in eight months). I guess the shares were low to some investors even through other less experienced investors thought the stock was too high. I don’t blame them because it was scary buying into a stock that ran up from $5 to $66 before I placed my first position.
FYI: Last Saturday, HANS filled its spot on MSW Index with a closing price of $85.66 and I set a new breakout price of $88.39 from the recent consolidation. It crushed that area this week on above average volume.
I hope many of you have learned to dismiss the idea that “high priced stocks” can’t give you excellent gains in a short period of time because this is completely untrue. If you want to argue, please see HANS and the other $60+ stocks that have made the run on MSW.
Piranha
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