With the news of that the Eurozone recession has deepened most of the market fell slightly but BUMI dropped significantly from around 440p to as low as 378p during the day. My first reaction was boy am I glad that I got out yesterday at 430p saving myself a tidy sum in lost profits. As the day wore on I could only see that BUMI would return to form as the stock has started to trend nicely over the last few months. So I decided to set an limit order to get in £1 pre point at 383p with a stop set at 340p. This is a 43 point risk so that’s 4.3% of my original £1k bank. Will the stock return to form? Well that remains to be seen but the fact that the stock jumped from 390p to around 400p at the close is a good sign that people think the price will rebound tomorrow. Only time will tell but I think the risk is worth the potential reward.
BUMI Chart
Buy at 383p Stop at 340p
