Jenna or ?, I am wondering if your investment style is still working as well as it once did or whether you have altered styles. Pardon me, but I have not traded stocks much after March and so have missed any comments about this. Yours was always one of the high quality threads and investment services.
I am seeing much quicker sector and stock rotation than ever before. The Wall Street boys love something one day and hate it the next. Today they hate tech stocks because of earnings warnings fears, even though last week they said earnings forecasts look fine for the upcoming quarter.
Seems like the best approach now is to forget momentum and even earnings predictions and just buy good quality stocks in a healthy sector when there is a day or two of panic or sell-off.
It seems like if you are patient you can get great buys like a few weeks ago on ASYT at $18 or Lam Research at $21 or KOPN in the low $20's.
BTW, I was just looking at the chart of DS (Dallas Semiconductor). It's a regular sawtooth pattern. Solectron is much the same way. These Wall Street guys just play them up and down, up and down.
Anyway, if you get a chance, send me a PM or post publicly.
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By the way, some of you think I am probably nuts for playing some BB stocks, but they can be interesting. All you have to do is find the few good quality stocks and figure out the MM action. You also avoid them from May through Labor Day. Once you see a few with 500-2,000% gains, you get to kind of like them.
Just for fun, put ASRG on your radar screen. Don't buy it unless you really DD it, but it's a profitable BB stock in the Natural Gas production area with a fairly big league CEO. Used to be on AMEX before it got delisted and new management took over. Lots of questionable MM action took this down to 18 cents a few weeks ago. Now at 36 cents with the Company about to release year end audited earnings that should be excellent. They have interests in 1200+ Producing Wells. Key word is producing. My 1 - 2 year speculative target is $2-3. asrgc.com has a Research report if interested.
Should be a fun one to watch over the next year for newbies to the BB market. The big question is whether the MM's will let it run. It's been a real tug of war as they try to wear out the impatient day- and momentum traders with questionable stock price action and coerce them into selling so they can cover their apparent shorts. But there are a lot of long term investors here for a BB stock.
Very interesting analytical process on some of these BB's.
SETO is another profitable one with a good REWARD/RISK ratio, IMHO, and occasional bizarre MM action. They regularly let the savvy buy at the bid to make it look like selling is going on. Anyway, when the smoke clears, SETO should be a nice winner over the next year. Excellent growth company. Currently $1.43.
All the best,
DAVE |
