joepetrow.com: profiling APII
from $0.775 a share, how high can it go?...    Image Enhanced    Low Image Site

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Quick comment regarding apii page:
Summary: I started following Action Products International Inc. in early April 2001. This was my first "planning" attempt at picking a stock, and I was trying to see if I could find something that could double in value in six months or less. From a start of $1.28 per share, it briefly touched the $2.00 range before three straight poor quarters took their toll. As of December 18th, the ask price was just $0.79. So why buy now? The reasons I came UP with are:

  1. Looking at the 15-year chart for this stock, the two previous times this stock has been below a dollar a share (1990 and 1995) it has eventually rebounded to up to $5.00 a share.
  2. The September 11th tragedy had an abnormal affect on this company, a speciality toymaker, which was poised for a Q3 rebound, and is projecting record sales for Q4.
  3. The White House "Home For The Holidays" theme indicates that this will be a more traditional Christmas, and APII's product should be in higher demand.
Anyway, I have finally put my money where my mouth is, so let's see where this baby takes me (back to $5.00 a share, I hope!)

APII 1 year stock chart
December 19th, 2001:To read more about my earlier research into APII, see the APII2001 portion of my site.

 

 


...on the plus side [Standard & Poor's] upgraded their opinion of the stock to "Bullish" last month, and on a scale of 1 to 99 gave it a Relative Strength rating of 86.
February 4th, 2002:I purchased the Standard & Poor's stock report for Action Products International Inc. the other day. It doesn't say too much that I didn't already know, but on the plus side they upgraded their opinion of the stock to "Bullish" last month, and on a scale of 1 to 99 gave it a Relative Strength rating of 86. On the downside, they mention that $10,000 invested in APII five years ago would be worth only $4,266 today. Anyway, we'll have to wait until the next Quarterly Report is filed before we really have a good idea about the future of this company.
...what I'm hearing doesn't exactly give me the warm fuzzies...but I will hold out hope until the Quarterly and Annual reports come out.
February 7th, 2002:I just discovered the Action Products Message Board on Yahoo Message Boards! It's great to finally hear some honest discussion on this stock...but what I'm hearing doesn't exactly give me the warm fuzzies. The stock dropped 13% on trading of just 1500 shares too...also not a good thing. But I will hold out hope until the Quarterly and Annual reports come out.
Finally some vindication, as the stock jumped from $0.82 to $1.04 a share! But right now, if you pick up shares of stock at this price, you do so at a significant risk.
February 21st, 2002:Finally some vindication, as the stock jumped from $0.82 to $1.04 a share! But seeing as there is no news to accompany this rise, this may be nothing but the company buying back their own shares to push themselves over the minimum $1.00 a share price they must maintain to stay on the NASDAQ. Anticipating this, I had a limit sell order on about 70% of my stock for $0.99. Minus commissions, I made about 25% over two months before taxes. Not quite the double for 6 months I was originally shooting for, but pretty close to that pace.

I'll let my remaining 30% investment ride for the long term, but as for now I'm not sure what I'll do with my newfound free cash. I have a couple of other leads I'm looking into, but this time I won't rush in until I'm sure it's a good deal. Or, if APII drops back down to the $0.70 range, I might just swoop in and pick UP some more. But right now, if you pick up shares of stock at this price, you do so at a significant risk.


BANG! The stock is up to $1.41! Should I still hold my remaining stocks at this price, or take my profit and run?
February 27th, 2002:BANG! The stock is UP to $1.41! Lots of good news from the Toy Fair I guess, record revenue and orders coming in, and they added a new member to the board of directors. They expect lots of sales from their new Jay Jay The Jet Plane line too. Obviously, it was a mistake to sell at $0.99. Should I still hold my remaining stocks at this price, or take my profit and run? Whatever, this is a nice dilemma to be in! :-)
If I had been patient, I really would have doubled my money with this stock. But I just couldn't stand all the volitility involved.
March 7th, 2002:Well, I sold all of my shares of APII. This has proved to be not so smart, as the price rose to $1.60 today. If I had been patient, I really would have doubled my money with this stock. But I just couldn't stand all the volitility involved. Oh well, at least the new stock I picked UP is rising as well, albeit at a slightly slower rate. But if APII gets up to $3.00 a share, I'll really be kicking myself!
This is the last I will have to say about APII...it is too thinly traded, too specialized, and success depends on too many factors for me to recommend its purchase to anyone.
May 27th, 2002:By looking at the chart near the top of this page, you can see that I'm not kicking myself at all. After briefly flirting with $2.00, this stock has backed off, never to rise over $1.50 again (IMHO). I've invested in three other stocks since this...one has turned out extremely well, one has turned out pretty well, and the other turned out extremely BAD I have a lot to say regarding these experiences, but that's the subject for another page to create someday.

But I think that this is the last I will have to say about APII. In short, it is too thinly traded, it is too specialized, and it's success is dependant on too many factors for me to recommend its purchase to anyone, especially with the current state of the economy.


If APII gets back under a buck, this might be a good buy, if only because the owners are proving themselves to be acting under the influence of pure vanity.
December 2nd, 2002:An interesting few weeks for this stock. First, APII announced they were fighting a potential delisting from NASDAQ because net tangible assets and stockholders equity were below minimal requirements. This was followed soon after not by a drop as expected, but by a sharp rise in the stock, and an announcement that the company was ramping UP efforts to buy back even more of their stock. This too was met with a counterintuitive reaction, as the stock dropped on this news.

Apparently, the company is willing to do what it takes to keep APII listed on the NASDAQ exchange. But the company itself seems to be the only people interested in buying...and they already own well over 2/3 of the shares available. My guess (and all I can do is guess these days...) is that the company will continue to buy up the value of this stock until minimal requirements are met, then watch helplessly as it drops back to the $1 range. If APII gets back under a buck, this might be a good buy, if only because the owners are proving themselves to be acting under the influence of pure vanity.

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