I would like to get some advice on how to analyze the two stocks I own and also how to improve my trading method. Thanks in advance!
First one is MSO. I purchased MSO at 3.58 on 2013-12-02 and sold half of the positions at 4.76 Feb 25th since there was resistance from two years ago. Later MSO reached 2 year high on March 3rd then dropped to 3.8 now which is closed to its 30 weeks MA. I am thinking of repurchasing it back if the volume and price go up for 2,3 days. What's your thoughts? and What would you handle the other half position differently as a trader or investor?
Second question regarding to MPET. Purchased it at 1.29 on 2014-02-26 and sold half positions at 1.65 on 2014-04-04 as there were some resistance around 1.7 three years back. Now it's price went up to $2 and the reason seems to be the dividend news
Quote:Magellan Petroleum Corporation (NASDAQ:MPET) hit new high today after news that the board of directors of Magellan Midstream Partners, L.P. (NYSE:MMP) has increased the partnership’s quarterly cash distribution to 61.25 cents per unit for the period Jan. 1 through March 31, 2014. That represents the 48th distribution rise since its initial public offering in 2001. The first-quarter 2014 distribution is 21% higher as compared to the first-quarter 2013 distribution of 50.75 cents per unit and shows a 5% rise versus the fourth-quarter 2013 distribution of 58.5 cents. The new dividend, which equates to $2.45 per unit on an annualized basis, will be payable on May 15 to unitholders of record at the close of business on May 8.
I read up on dividend and learned that the price usually drop after the dividend date. And it seems that it's common for oil company to give out dividend instead of reinvesting it (though I haven't dig deeper). My question is that shouldn't the price go up 61.25 cents from the price point of the news came out? and what would you do now?