I bought ENVX on breakout -- but since then, it sold off after results. Is it still a hold or just sell and move on?
The decision to buy/sell stocks is personal as we all have different time frames, objectives and personalities. I know myself and I am not a patient person. There are many folks who are and invest differently. Holding on to a stock that is floundering means there is "opportunity cost" associated with holding that stock. You are holding dead money while you could use that cash to buy a solar or biotech stock which is advancing.
ENVX is a "story" stock in that they do not deliver sales and earnings just yet. They did sign a military contract earlier this year, and I am sure they will sign more in 2023. They have cutting edge technology. However, it is too early to know if their technology will be adopted by some of the larger smart phone makers like Apple, Google, Samsung and others.
It looks like the stock has made a bottom at $9.54 on November 3 and quite a bit of volume came in to support that stock. It may go lower but there is a good probability the bottom is in and you suffered through the worst of the downturn. If you see now and take a loss then you are likely to be selling near the lows.
The weekly chart shows us that this is the personality of this stock. It will have wide swing and sells off from time to time. This is a highly speculative stock, and that may be the reason for these wild swings.
Thurman J. (“T.J.”) Rodgers has served as a member of our board of directors since 2012. Rodgers founded Cypress Semiconductor in 1982. He served as Cypress’ CEO for 34 years until stepping down as the longest-tenured CEO among all publicly traded technology companies.
Rodgers is a former chairman of the Semiconductor Industry Association (SIA) and SunPower Corp. In addition to Enovix, he currently serves on the boards of other energy-related companies: Enphase Energy Inc. (energy and storage technologies), Solaria Corp. (advanced solar energy products) and FTC Solar (single-axis tracking for solar).
https://www.globenewswire.com/news-release/2022/08/10/2496144/0/en/Enovix-Awarded-Follow-On-Contract-to-Build-Wearable-Battery-Cells-for-U-S-Army-Soldiers.html
If you have the patience to sit with this stock for a year or more it may be rewarding. If not it is best to move on and buy a stronger stock with sales and earnings growth. Personally, I do not have the patience.
I hope this answers your question.
Regards,
Marty
