Applied Optoelectronics (AAOI) - 122% Gain in 1 Month
This is a trade rationale from a past trade for educational purposes only. For access to our current portfolio subscribe today!
We added AAOI to the portfolio in July 2023 at a price of $6.87. The stock met our valuation and market cap criteria, and was among the top 50 micro cap stocks outperforming the S&P 500 over the previous 12 months.
The stock bottomed out in the summer of 2022, and 3 months later saw accumulation on a massive spike in volume. It took about a year for the stock to break above the resistance created by that first wave of accumulation.
We removed the stock from the portfolio just a month later at a price of $15.25, for a gain of 122%, as the company exceeded both the market cap and valuation limit for the portfolio.
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