Potential Power Play: Sosandar SOS

Saturday, Aug 11 2018 by
21

Over the last few months, I have had a few successes with what Minervini calls power plays. These are stocks that go up by 100% or more in an eight week (or less) period, then consolidate/correct without correcting more than 20-25%, then finally move back up and through their high (at the top of the initial increase). The buy point is just above this high ideally on good volume.

I've had a few successes with this: Ocado and Bahamas Petroleum have been the most obvious examples.

I've been watching Sosandar (LON:SOS) for a while now since it hit a high of £0.36 on 23 July. It has since corrected about 25% (£0.27 on 3 August) but has now rebounded strongly with a huge rise on Friday. My hope is that it now tightens up for a few days before bursting through the £0.36 buy point when I plan to buy.

I know that there are a few who are in this already and I usually stay away from stocks that have an overly active ADVFN group (which SOS has). However given the good company in that group, I'm going to make this an exception!

Let's see if we get that breakout.
M.

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
21 thumbs up
0 thumbs down
Share this post with friends



Sosandar PLC, formerly Orogen PLC, is a United Kingdom-based company that operates an online women’s wear platform. The Company’s clothing categories include dresses, jackets and coats, knitwear, shirts and blouses, tops, skirts, trousers, jeans, leggings, footwear, leather and suede, occasion wear, work wear, autumn trends, velvet and holiday shop. Its footwear products include Pewter Metallic Chelsea Boot, Red Leather Ankle Boot, Velvet Cylinder Heel Ankle Boot, Black Leather Stud Detail Ankle Boot, Black Suede Closed Toe Mule, Grey Velvet Court Shoe With Jeweled Brooch, Black Suede And Pewter Metallic Court Shoe, Black Leather Front Zip Ankle Boot, Leopard Print Leather Chelsea Boot, Steel Blue Leather Snake Print Ankle Boot And Black Suede Knee Boot. It also offers latest edit of day-to-night dresses, on-trend separates, luxe leather and outfit-topping shoes through its platform. more »

LSE Price
16.25p
Change
2.4%
Mkt Cap (£m)
25.9
P/E (fwd)
149.5
Yield (fwd)
n/a



  Is LON:SOS fundamentally strong or weak? Find out More »


58 Posts on this Thread show/hide all

ricky65 29th Aug '18 39 of 58
2

In reply to post #394349

I disagree that stocks such as Sosandar (LON:SOS) aren't suitable for Minervini style trading.
1. The spread isn't that wide for a small cap (~2.7% as of writing). I've had success with Minervini's strategy trading small caps with spreads as wide as 10% or even a little more.
2. Minervini doesn't require fundamentals on the table for a Power Play.

| Link | Share
Trident 29th Aug '18 40 of 58

I now spend too much time looking at the shareprice of this stock, so being sucked into a day trader mindset when
I am anything but.

Wonder if I shouldn't adopt Paul's strategy and turn off. But I bet despite best intentions, he doesn't or can't either!?

| Link | Share
mmarkkj777 29th Aug '18 41 of 58
1

Does it matter exactly what Mark Minervini would do here, and what he would do there?

I bet he would chuckle reading some of these comments. He probably doesn't even follow his own rules as precisely as some of his disciples.

I know Jim Slater didn't. He used his principles as a guide, but if it was a stand-out stock that met most of his criteria, he would buy anyway.

This is a fantastic growth stock. Don't miss the boat just because an i isn't dotted here, or a t crossed there.

| Link | Share
shipoffrogs 29th Aug '18 42 of 58
8

"This is a fantastic growth stock".
Well it might prove to be so, but so far sales are just over £1m - there's still a lot of i's that need dotting and t's crossing

| Link | Share | 2 replies
mmarkkj777 29th Aug '18 43 of 58
2

In reply to post #394539

Hi Shipoffrogs,

All depends on your outlook. I'm 30% up on this in a matter of days. To me that's pretty fantastic.

Stop loss in place of course!

| Link | Share
IGotPoesJacket 30th Aug '18 44 of 58

In reply to post #394539

And that’s the problem with historical data. Sales were nearly £1m in Q1 and have likely risen strongly since then.

| Link | Share
unwise2 31st Aug '18 45 of 58
4

In reply to post #394324

This discussion is hypothetical because none of us know how Minervini would have played it!

I have to disagree, I have subcribed to Minervini's MPA service and get to listen to Mark's method of trading on a weekly basis for 1-1.5 hours every week. I have seen hundreds of buy points Mark has chosen to trade and setups he has rejected that have been put forth by other members.

Mark wouldn't actually buy SOS because he never invests outside the U.S, we are simply discussing how Mark's trading rules could be applied to a U.K stock.

| Link | Share | 1 reply
ricky65 31st Aug '18 46 of 58

In reply to post #395029

"Mark wouldn't actually buy SOS because he never invests outside the U.S, we are simply discussing how Mark's trading rules could be applied to a U.K stock."

I'm aware that Mark only buys US stocks and I agree with the last sentence. It's not clear to me what you're disagreeing about.

Anyway, I think Stocko members would be grateful for any insights you have from trading alongside Minervini in his MPA service.

| Link | Share | 2 replies
vik2001 31st Aug '18 47 of 58

Intercede (LON:IGP) could be another stock Paul has in BMUS that seems to be breaking out last few days. up 4% today also.

| Link | Share
IGotPoesJacket 31st Aug '18 48 of 58
2

So, one thing I am unsure of, when is the "powerplay" played out?
With ~10% fall from peak this morning are we likely to see some capitulation as you chart botherers look for the exits?
And are we expecting this to set itself up for another "powerplay" ie, fall no more than 25% and bounce back thorugh 45.5?

| Link | Share | 2 replies
herbie47 31st Aug '18 49 of 58

In reply to post #395059

I doubt he would trade anything this small, is that not another of his rules? If he had bought then he probably would have sold by now.

| Link | Share
maffs0 1st Sep '18 50 of 58
3

In reply to post #395059

unwise,

like you I subscribe to Mark's service and have found his weekly commentary very helpful.

One thing I have noticed is that he often misses perfectly good breakouts and buy points (Weinstein/O'Neil style) and often sells way too soon and misses big moves up. On other occasions, he buys stocks that if someone else had mentioned them I'm pretty sure he would have rejected. There is clearly an art and a lot of experience there that is difficult to "teach". So while I am learning  a lot, my style will never be exactly like his. 

For me, this has been a perfect power play. The buy point you mentioned on the low cheat would, in my opinion, have been very risky and I was happy to wait for the pivot at 35 and the breakout to new high ground at 36.

M.

| Link | Share | 1 reply
maffs0 1st Sep '18 51 of 58
2

In reply to post #395069

It would need to set up again to be another power play. Its extended from its base now. You could buy if it broke through its highs but it would be a much higher risk trade than my original proposal above.

I'm not sure what you mean by "played out". I have sold half (23% profit) and moved my stop to breakeven (35.5p). For that remaining portion to be a good bet, I must believe that it is more likely that Sosandar (LON:SOS) will hit 50p plus than it will stop me out. If I could sell the rest for a 50% profit, I would be very happy but it may go even further than that. Power Plays can be the start of a big move up.

M.

| Link | Share
mmarkkj777 1st Sep '18 52 of 58

I must admit I got my tactics all wrong on this.

I made a good profit before being stopped out, but I really should have made more of the opportunity.

I've still got a small position and I'll be looking to top up at a good point and see if I can do better, learning from this one. Must try to get my timings better with the next SOS trade.

| Link | Share
ricky65 1st Sep '18 53 of 58

In reply to post #395299

maffs, thanks for your insights into Minervini's MPA service. Interesting you mention that he often sells too soon and misses big moves up because in an interview I recall him saying that his weakness is that he sometimes sells too soon.

"For me, this has been a perfect power play. The buy point you mentioned on the low cheat would, in my opinion, have been very risky and I was happy to wait for the pivot at 35 and the breakout to new high ground at 36."

I agree. I couldn't understand why unwise said that Minervini wouldn't have bought the new high breakout at 36 and instead would buy the "low cheat" points he mentioned. I had another look at all the Power Play examples in both books and he always has the "I'm buying here" arrow on the breakout to new highs.

Rick

| Link | Share
seismo101a 1st Sep '18 54 of 58
2

Great thread, I just wanted to extend my thanks to maffs0 for starting it, and all the subsequent contributors to the thread.

I find it fascinating how different posters were spotting different patterns ahead of the breakout.

I personally saw it as a flag pattern. But really liked the tightening of the SP range and volume ahead of the breakout. The volume increase at breakout was impressive.

| Link | Share | 1 reply
Retirement 2020 2nd Sep '18 55 of 58
2

In reply to post #395374

Also wanted to add my thanks to those who commented during the week as the trade developed.

I was pretty pleased with my entry on Friday 24th: 10k at 35.4p and another 10k later in the day at 38.10p, with a stop loss for both at 35p, target price 44p (20%).
Unfortunately it all went wrong on Monday morning when the alert I set triggered during the market open. As I couldn't watch the prices during the day, I elected to sell all at 37.35p only to return to my desk at the end of the day to find the share had blasted away. So I've printed out the charts in colour and stuck them on the wall in my study to remind me to ALWAYS follow my rules!

Total profit realised after commissions £90, potential profit would have been £1,445. At least I have more confidence now that the pattern works in the UK market.

| Link | Share | 1 reply
mmarkkj777 2nd Sep '18 56 of 58

In reply to post #395389

Hi Ret. 2020,

Like you I messed up by not sticking to my own method. I got in earlier, and out later than you, but I still missed partially.

I really don't think the story is over by any means for SOS and we will all have further opportunities to make money. Personally, I can't decide if this should be a passive buy and hold (trying to ignore the volatility) or a stock to trade through the highs and lows.

Interested to see what happens next week.

This has been a great thread (even though I got a lot of thumbs down for a previous comment) :-)

| Link | Share
unwise2 3rd Sep '18 57 of 58
2

In reply to post #395069

So, one thing I am unsure of, when is the "powerplay" played out?

The most difficult decision a trader/investor faces is when to sell when you have a profit. I only have a small position by my standards in SOS due to small Mcap and liquidity. I personally am going to continue to hold SOS through this first pullback/"natural reaction" to see if we get some "tennis ball action". I will only sell if SOS falls to my original stop loss.

| Link | Share
maffs0 12th Sep '18 58 of 58
2

I've just bought back the shares I sold earlier ay 43.8p. The chart tightened up nicely for the last few days and when it broke above 44p, I decided to go back from a 1/4 position to a ½ position. I'm a little concerned with the low volume today but it might come yet.

M.

| Link | Share

Please subscribe to submit a comment



 Are LON:SOS's fundamentals sound as an investment? Find out More »





Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis