Buy & Hold (while the fundimentals are intact) vs trading questions.
All: As a trader, my report card would still be c- at best. As a long, over the last 1.5 years, I'm a B (without my biotech passion I'd be an A-) I have two solid winners I recently took 50% off the table since I had sizable profits. I purchased both way to far in advance, and thus endured major (temporary) paper losses, while the business case continued to improve.
For example, I bought ADIC around 16 last year. Saw it go above 20 on good news, yet saw in the news, that the investments they were making 4 the future would result in short EPS downtrends, and eventual price declines. Probably should have sold then, as ADIC plunged seriously disproportunately to the short term earnings decrease (into the 6's.) Now they're setting EPS & sales records, have secured major contracts, have announced a load a product development releases, made a key acquisition, and are at 43 (I took profits at 50% @ 31.75, which I don't regret, since my failure to execute this discipline has cost me most times)
I realize the theoretical wisdom of bailing until the stock turns (as I actually did with TRIBY)
But in practice, when a stock sells off prime time, yet the business case is sound, how many of ya'll actually re-acquire the stock as the trend reverses, or do you mentally have long since shifted elsewhere?
Please let me know your experiences, and hints as to when to re-acquire a sound, unreasonably downnbeaten stock.
Thanks Scott
FYI, you're dealin with a steriotypical absent minded professor here. |
