The CEO was very upbeat about the natural gas pipeline and distribution companies prospects. The company does look interesting to me. I am looking to buy in a few weeks or so.
In a previous post I warned about jumping in too soon after such a presentation on TV. ETP stock price today is a perfect example.
The stock opened today at $46.40 and in minutes was trading at $46.83 as the morning closes it is trading at $46.74 a little off the high but still at a premium.
Trading volumes are also high, yesterday the stock traded 400,000 shares today it traded 428,000 shares in the morning session alone.
My case, Market Makers make a killing when popular programs like Mad Money on CNBC talk about a partuicular stock.
Watch out for the sudden urge to jump into a stock picked on programs such as Mad Money, they are not neccessarily bad stocks, but you will see inflated pricing on them for a few days. Hold back, ok you may miss this spiike in price, but you will also not be paying over the odds for a stock that begins to fall to its old level in a few days.
Mark the stock, wait patiently on the sidelines and when the stock stabilises buy then and enjoy reaping greater profits.