Reposting from 3 years ago, with updates in bold.
https://www.reddit.com/r/stocks/comments/gr91hs/what_stocks_cycle_back_down_to_a_low_but_never/
Can you think of any stocks that often times revert back to a low, but never really go below it? Kind of like a cycle of boom-bust-boom-bust. And I'm talking over the course of up to several years or more. Maybe the stock will drop 25%, or maybe it'll drop 90%, but there is just that base level that it rarely, if ever, drops thru.
It seems like when I eventually identify a good one, it will often end up getting bought out.
Some current ones I've come across are:
USNU US NeuroSurgical Holdings Seems to have a good base of 5-10 cents since '07. In the past 3 years, USNU has bottomed out at 4 cents, and is currently at 21 cents.
JSDA Jones Soda Seems to have a base of 15 – 25 cents In the past 3 years, JSDA has bottomed out around 16 cents and popped to ~$1.30. It is currently around 17 cents.
DRD Gold Seems to have a base of ~ $2-4 In the past 3 years, DRD Gold has bottomed out at $4.66 and has peaked at ~$14. It is currently $8. In this environment, I would not expect it to drop to $2-4, but I would not buy at $8.
HRB H&R Block Seems to like taking lots of ~50% 'breathers' over the decades. In the past 3 years, HRB has almost tripled. It peaked around $49, then dropped to $29 (almost a 41% drop) and is currently back around $42.
AEO American Eagle seems to have a solid base of $11. Post-pandemic, it's almost up to $11 again. Additionally, the CEO typically buys towards the bottom and sells at the top. This has never really been a long-term hold for me, but does pay a good dividend and I've gone years without being long AEO. But it has been one of my better stocks overall just by playing the cycle. Since my original post, AEO has gone from $11 to $39, then dropped to $9.50 and rose to $17, dropped to $10 and rose to $17.50. I hopped in the last time it dropped to $10, and exited too early with only a 10% gain.
BVNRY has a base around $6-7. Bavarian Nordic (Danish pharmaceutical) that also had/has the exclusive rights to the 'monkeypox' vaccine. Started trading at $6 almost 10 years ago, rose to $23, dropped to $6 then doubled, dropped to $5 at the COVID low, rose to $19, dropped to $6.50 and is currently under $7.
HRZN Horizon Technology Finance is a Business Development Company (BDC) that typically yields 10-13%. Since they IPO'd in 2010, their historical average has been $13.18 per share. In the past 5 years, the stock has been trending around the $12 mark, with occasional dips down to $10 or $11, but then it always seems to bounce back. Currently $12.25
So, what stocks do you know of that cycle down to a low, only to never (or rarely) break thru that low?
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