Why others are interested: Goldfield Corp. (GV) was a storm play after Hurricane Harvey. The company helps rebuild power and communication lines and makes it clear on its own web site that it profits from disasters and troubling times; based on where it does business and on its stock chart, it was a screaming buy as the flood waters were cresting.

With Hurricane Irma now bearing down on the Florida coast and the southeast – another area that Goldfield works – some investors are assuming another storm will bring another jump price for GV.

Yes, the stock — which peaked above $5.50 – was helped out by the idea that Irma is coming, but buying it now would be a chase. A long-term investor might be interested, because the company does have good prospects, but it would take a long time to pay off from current levels.

How I played it: I bought 5,000 shares of GV on Aug. 27 at $4.25 and everything I expected to happen with the stock actually came true. I sold half of my position on Aug. 31 at $4.70, and the rest on Sept. 5 at $5.30 for an average price of $5 on my shares, a 17.5 percent profit.

Listen to Taylor’s late August buy recommendation on GV

What must change for GV to be a play again: A natural pullback to roughly $4.75 – if it can find some support – would make Goldfield a stock to watch. What I would like to see is a 50 percent retracement from its recent highs back towards recent lows, which might make for a Fibonacci play with room to run back to recent highs and – if the latest hurricane helps – beyond.

But until that happens, leave GV alone. An entry above $5 at this point is just not smart.

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    Taylor Conway is the lead day trader at PennyPro.com. He is a short-term day trader of stocks and ETFs. He currently has no shares, options or open orders in GV, having traded 5,000 shares in the stock as a swing trade as described in this commentary.

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