Accumulate, to me, means pick a spot and start to build, or add to, a position. Buy means buy at the current level.
With HLTH, accumulate implies it will recover to more than $18 (the prior close). If you buy that, one approach (not mine) would be to put on a 10% position at 16.20, a 20% position at 14.40, and 30% at 12.60, and hold the remaining 40% to add after a panicky low, maybe at 15.125 and 18.125. This would be an average of $13.67 on the first 60% and $14.67 if the remaining 40% (in dollars) is positioned.
Accumulate is a planned, cautious approach to taking a position, appropriate for a fund that does not want to disrupt the market, and to take the emotion out (buy low ...). |
