<<I consider the market to be smart and efficient in that what is known and understood, by the majority, is usually built into the price. As a chartist, I expect you agree with the above statement. >>
Well my friend, although I like charts to support fundamental analysis, I don't think they are efficient in telling you the true value of a company. I am sure you know there are many occasions where the market is not that smart. In fact, it happens all the time. So I think I disagree somewhat with your statement. Charts will help to find these moments when the price of the stock is out of synch with the value of the stock.
You are right of course about risk management and WSP at $0.60 was a low risk proposition...congratulations for your excellent coverage and advice.
But I would had that, no matter what is the price of a stock (product), risk is controlled if you can value adequately the assets of the company. Whenever you can't you are speculating. Nothing wrong with that, but that's when the risks are greater.
A good example of this could be SUF vs WSP.
As you said, the future of WSP now rest, more or less with the judgement of mother nature, while SUF has enough assets to eliminate all risks at current price level. Although WSP has better speculative short term potential, If I had only one bet to place now for the long term, the choice would have to be SUF.
As you said, there will always be good opportunities. We only need to ride a few every year.
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