Friedman Industries

FRD

Company. Friedman Industries "is in the flat roll sheet and plate steel processing and distribution business. Friedman Industries operates two plants, each capable of cutting-to-length, leveling and temper passing hot roll steel coils weighing up to 25 tons." (company website)

Buy. Friedman Industries reached $7 at the beginning of October and then retreated. It broke through $7.50 last week, but immediately pulled back. Money is flowing into the stock (CMF) and there is strong buying pressure (green +DI line). With three consecutive days of advances on solid volumes, FRD looks poised to break through the $8 level.

Sell. As my momma used to say, "Just say 'thank you'." For no apparent reason, Friedman gapped up $1 to open and then rose another $1.35 before pulling back modestly. The only news on FRD is old news. But obviously someone knows something.

I briefly considered holding on and enjoying the ride — After all, it might go up some more! Then the voice of reason said Don't be a fool! It will probably go down. I tried to sell at $10.95, but only 200 shares went at that price; eventually I lowered my price to $10.70 to close the position for an average of $10.75 per share.

Whatever the reason, FRD turned out to be an early Christmas gift. Thank you, Santa!