Tuesday, March 22, 2011

Acme Packet, Inc. (APKT)

Acme Packet was on my watch list for more than a year and a half following its IPO in October 2006. I waited and waited and waited (and waited some more) to get an entry signal, finally jumping in when it traded down from over $15 during October 2007 to less than $8 in early February 2008. 

1. SHORT the week of 2.4.08 at $8.16 with a $12.60 stop. Traded all the way down to $4.05 the second week of July, then rebounded just far enough to trigger my $7.36 stop the week of 9.15.08. A long signal, in the middle of the worst financial crisis since the 1930s? Really? Gain of 7.6%

2. Reversed to LONG the week of 9.15.08 at $7.54 with a stop at $4.42. Traded up one penny to $7.55 the following week, then straight back down to $4 again, along the way taking out my $4.28 stop the week of 10.6.08. Loss of -45.6%

3. Reversed to SHORT the week of 10.6.08 at $4.10 with a $7.59 stop. By early December it had traded down to $2.83, then it bounced around $4.50 through the spring before rising to meet my $5.35 stop the week of 3.9.09. Loss of -31.5%

4. Reversed to LONG the week of 3.9.09 at $5.39 with the stop at $2.89. Immediately began moving up, trading over $10 by June, and then the stock really took off. It moved above $20 in April, past $30 in August, and was over $50 by November, finally reaching a high of $76.95 the week of 2.22.11. Over the past month it has dropped back below $70, closing Friday at $66.58 with a stop at $53.57. Gain of 1,135.3%

Winning Trades: 2 | 50.0% | $30.91/share avg.
Losing Trades: 2 | 50.0% | -$2.37/share avg.
Average Trade: Gain of 266.4% | $14.27/share

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