Hey, it was 1999, before I had finally figured out SSGs, taken the advanced class, and had the data files. I don't keep old SSGs and try not to second-guess my decisions, but I recall that the stock price had been languishing for 6-7 months, earnings had been decreasing, there was some uneasiness re: medicare and medicaid reimbursements, and as I mentioned, was getting more heavily into tech. And at the time I was very happy to have a 55% return in just over two years.
My club bought ADCT in early '99 at $13 and change, watched it run, no one did an SSG at the top and suggested we sell, and you know the rest. Then last month a member presented a SSG as a strong buy at $10.40 using some assumptions that seemed plausible at the time. We discussed, a vote to buy at the market was modified to buy at a $8 limit, and a week later the bad news hit and it sank like a stone.
So our order was filled on the way down and now we're back to $8. But the real lesson here is what you suggest: using a SSG properly would've prevented this ugliness, IMO.
It will be interesting to see what the club members have to say in next week's meeting. |
