In another sign of the volatility in small-cap shares, the stop loss in DUG was reached late in trading yesterday.
We only opened a position in DUG on the 21st of November with an entry level of $2.08. The company then held its Annual General Meeting on the 23rd of November after the close of the market. With an AGM reporting everything is on track the share price then traded up to $2.18 before a small pullback. The share price then spent several trading days consolidating above $2.00.
The announcement this morning that Sheila Lamont, the spouse of co-founder and Managing Director Matthew Lamont, had sold 2.5 million shares at $1.85 caused the share price to fall.
The share price opened at $1.96 and fell before staging a recovery. Initially, it looked like the share price would remain above $1.75, but a few late trades just before the close caused the stop loss to be reached.
Closed position result
Number of Shares Purchased: 2,500
Initial buy price: $2.08
Exit Price: $1.75
Position closed for a profit of $825.00
