Reposting from 3 years ago, with updates in **bold.**
Can you think of any stocks that often times revert back to a low, but never really go below it? Kind of like a cycle of boom-bust-boom-bust. And I’m talking over the course of up to several years or more. Maybe the stock will drop 25%, or maybe it’ll drop 90%, but there is just that base level that it rarely, if ever, drops thru.
Some current ones I’ve come across are:
HRB H&R Block Seems to like taking lots of ~50% ‘breathers’ over the decades. **In the past 3 years, HRB has almost tripled. It peaked around $49, then dropped to $29 (almost a 41% drop) and is currently back around $42.**
AEO American Eagle seems to have a solid base of $11. Post-pandemic, it’s almost up to $11 again. Additionally, the CEO typically buys towards the bottom and sells at the top. This has never really been a long-term hold for me, but does pay a good dividend and I’ve gone years without being long AEO. But it has been one of my better stocks overall just by playing the cycle. **Since my original post, AEO has gone from $11 to $39, then dropped to $9.50 and rose to $17, dropped to $10 and rose to $17.50. I hopped in the last time it dropped to $10, and exited too early with only a 10% gain.**
**BVNRY has a base around $6-7. Bavarian Nordic (Danish pharmaceutical) that also had/has the exclusive rights to the ‘monkeypox’ vaccine. Started trading at $6 almost 10 years ago, rose to $23, dropped to $6 then doubled, dropped to $5 at the COVID low, rose to $19, dropped to $6.00 and is currently around $6.**
**HRZN Horizon Technology Finance is a Business Development Company (BDC) that typically yields 10-13%. Since they IPO’d in 2010, their historical average has been $13.18 per share. In the past 5 years, the stock has been trending around the $12 mark, with occasional dips down to $10 or $11, but then it always seems to bounce back. In the past 2 weeks, it has dropped from $12.50 to $10.75, then back up to $11.75.**
DRD Gold Seems to have a long-term base of ~ $2-4. **In the past 3 years, DRD Gold has bottomed out at $4.66 and has peaked at ~$14. It is currently $9. In this environment, I would not expect it to drop to $2-4, but I would also not buy at $9.**
~~USNU US NeuroSurgical Holdings Seems to have a good base of 5-10 cents since ’07. **In the past 3 years, USNU has bottomed out at 4 cents, and is currently at 25 cents.**~~
~~JSDA Jones Soda Seems to have a base of 15 – 25 cents. **In the past 3 years, JSDA has bottomed out around 16 cents and popped to ~$1.30. It is currently around 17 cents.**~~
So, what stocks do you know of that cycle down to a low, only to never (or rarely) break thru that low?