Wade,
I would like to check out Navellier's MPT at some point, as I enjoy learning about new investment approaches.
My point on volatility or beta (which is usually a core part of MPT, and MPT was developed out of the efficient market theory) is that it's a crummy proxy for risk. THQ is a great example of a company that has a lot of price volatility, but at certain prices has very low risk.
For a short time in October the shares were selling at 13 and change. The company had fantastic fundamentals, proven management team, proven model, lots of products in the pipe, low P/E, strong and consistent ROE, etc.....but the stock had been hit hard. On a volatility basis or a relative strength basis the stock was a lousy one to own. But on a fundamentals basis the stock was a bargain.
Anyway, it will be fun to see how things develop around the earnings release. I only wish the stock would drop another few points to make it as attractive to buy as it was in October and (I believe) April of 98.
Thanks,
OGM |
