This post was just published on ZYX Buy Change Alert.
The position is long with an average price of $2.55. Currently, 50% of the full core position size is being held. Profits have been taken as high as $6.00
HERO is in the business of shallow water drilling for oil and gas in the Gulf of Mexico. The stock has pulled back due to a significant drop in day rates. However this drop is likely to be temporary and day rates are likely to go up again in late 2014 to 2015.
A director of HERO just took advantage of the drop in the stock price by buying 50,000 shares at $4.57 – $4.59. The new buy zone is $3.40 to $4.66. HERO is trading at $4.62 as of this writing. Long term target zone is $9.00 to $12.00. Temporarily no stop zone because the plan is to take advantage of any dips to accumulate more.
What To Do Now?
Those in the stock may continue to hold
Those not in the stock may consider slowly scaling in up to 50% of the full core position size in the new buy zone.