THREAD HONOR > > : FORBES MAGAZINE "Top 10" Stock Message Board On The Net (March 2002)
forbes.com
NOTE: Please read disclaimer at the bottom of the page
INTRODUCTION
What's this thread about? Simple this -- sound advice, hopefully honesty and integrity, lively discussions, and sensible stock picks (from microcap to large cap). We primarily seek out stocks of fundamentally sound companies, with sound current fundamentals and excellent future potential, then attempt to buy them for the short or long term at an excellent entry point. We recognize that some require long term holds to reach full potential and others are too risky to even hold overnight.
OVERRIDING PHILOSOPHY
I am more convinced than ever that the best way to be successful is to BUY QUALITY STOCKS AT THE RIGHT ENTRY POINT. In other words, maximize reward and minimize risk.
"Quality stocks" are those that have reasonable PE's, PEG's and Price to Sales, fundamentals and a good track record. The "right entry point" is best accomplished based on chartwork, news analysis, fundamentals and the patience to wait for the Reward to Risk to turn strongly in your favor. Reading the psychology of the Market (i.e. the Fear/Greed ratio) is also critical as an overly negative or euphoric market can overshadow T/A or even fundamentals for a time.
OUR CURRENT TRADING APPROACH
In 2002 the name of the game for me has been ODOD's or ODOW's (Oversold Disasters Of (the) Day or Week). In this market traders often will "over-sell" a stock. It may be due to unfounded rumors or some news that, while not good, is greeted with selling that begets more selling. Eventually enough is enough and it becomes a great Reward/Risk if timed right and carefully chosen. Of course, stocks in a sound industry with solid fundamentals are the best "play".
Our current fave is AKLM (already way up from our $1.60 buy point). With a current PE and PE/G that is incredibly reasonable and the release of Turok: Evolution and a dozen more games imminent, the shorts may be about finished. This could be a HUGE winner during the holiday season and in 2003.
ACF @ $9.25 on a "tank" a few weeks ago was a smash success as well, trading as high as $17 a couple weeks later.
Of course, we realize that we cannot always win, but try to limit short term pick losses to a 1-3% loss (more leeway on long term holds, of course). We try to maximize gains on winners if fundamentals and the overall market remains favorable. Not many bought the above stocks at the low and sold at the high, but at least we identified them as good R/R plays.
NOT TIED TO TECHNOLOGY
We love technology like the next guy, but we need to pay careful attention to sector rotation. We rule out no sector, so we track various indexes and try to identify the strongest "best buy" candidates in each. Technology may not be the best place in 2002, so it pays to diverisfy and expand our watchlist. This includes a mix of microcap and low-priced Nasdaq stock, for the more risk averse.
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STOCK CONTEST #4 STARTS SOON
Prizes again from my landscape photo website. For those of you who do not know, "Dave Gore" is my SI pen name and Robert Krause my actual name, so don't get confused when you visit naturescapes-gallery.com
OUR LANDSCAPE PHOTO WEBSITE (and free 8 x 10" offer for anyone)
The winner and runner-up get original signed, photo art from our gallery at naturescapes-gallery.com
I've won many photo awards. Please stop by if you love nature, hiking, and the outdoors, especially if you need a little mental break. Donations from a percentage of sales are made to the World Wildlife Fund (http://www.wwf.org) BTW- SI members receive a 20% discount, except during major sales.
MOST POPULAR PRINTS
Message 17243939
FINANCIAL SITES WORTH CHECKING OUT (FWIW)
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Happy Trading!
Disclaimer ---- this thread is intended primarily for discussion and sharing of ideas that hopefully will help us all to become more successful investors and traders. No one is thought to be giving insider information or to be licensed professional. The information presented by me, while believed to be accurate, is not guaranteed. No trade suggestions or strategies are ever guaranteed to be successful. It is strongly advised that everyone do their own verification and due diligence before making any investment decisions or employing any investment techniques mentioned here. The best philosophy is to trust no one on any message board. If you do so, it is at your own risk.
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