Is CMGI your "favourite" stock these days?
CMGI is my only stock these days. And these days are as good as any to be buying more.
I know there are other individuals on this thread who excel in timing the markets, but I was never quite that nimble (although enhancements in touch pad sensitivity have helped a great deal in getting my orders executed ;~). I figure that if I can buy within 20% of a bottom and sell within 20% of the top, I'll do better on my investment in CMGI than 99% of the professional fund managers.
And there's no reason to be selling CMGI at these levels if you are a long term investor.
With CMGI at approximately $100 per share, the company is valued at 9.2B. I see that valuation as approximately 20 - 25% of where they will be in 3 - 5 years, given the application of their current business model and continued favorable market conditions. So I don't really lose sleep over whether I can buy the stock at lower levels or how it teeters during days like yesterday or the months prior to it.
When the market takes CMGI lower, I buy. And if it goes below that price, I buy some more. It's probably an overly simplified way of looking at the stock, but the key to this stock is being sure that you first own it, and then when offered the opportunity to do so at fair market value prices, hedge your position through options.
Kind of a religion with me as it is with a few others on this thread.
When queried how he amassed his fortune, J.P. Morgan replied, "I put all my eggs in one basket, and then watched the basket."
So until a company specific event occurs that suggests that CMGI has dramatically changed its business model in a manner that limits its prospects for success, I'm just watching the basket...
Best regards,
Mark |
