Some comments on todays investment world....
I would like to put my assets into trustworthy stocks so am always looking for buy and hold types.
From various funds I have selected the following list of stocks that have performed well in recent years
AGY ALE AROW AXE BSYS CANI CSGS CXR EDO ESI ESP ICCI IMS ITT KMI KWD LOW LRY MTG MTON NVDA NVR PVA RES STEM STRA THQI TSS UNS
If the market ever stabilizes( which I doubt) we still have to perform well under the recent environment of huge volatility since that may represent , and probably does represent, the market of the future. It is merely bull talk to keep our hopes up for influential people on Wall Street Week to talk about a recovery or predict a sudden shift upward in the averages. Despite being wrong for several years, that talk will continue but it is just hope, which is needed to keep the market working
If one just "copies" the list, and pastes it in a Yahoo portfolio and then called for "detailed" all the data and curves for the stocks can be seen.
( I dont know how to show curves from an SI PORTFOLIO)
Scanning the list shows that most have earnings of 50 cents or $1.00 plus. P/E of 8 to 50, Market caps of 200 mm to 8 bil, etc. for these recently popular stocks. I think these would be called small or mid-cap stocks
and would help decide what to call for if using an online stock screening process.
There are not many techs that fit here, intc and msft too big, many P/E's are out of sight and there is no need to settle for negative earnings where a company loses money on every sales but tries to make up for it on volume
( I am a reformed tech stock junkie)(G)
I have been rather successful for the past three months, with up to 80% on my assets in Ally, sometimes 40% in Taro. But last week was a dilly, and convinced me to be more diverified. My biggest enemies, outside of fears and panic, are the analysts who tank entire sectors with their churning efforts.
For example, today some negative comments on the drug Rituxan, took down the whole drug sector including my beloved Taro. The thing that saved me, was taking profits when it was up, as Freeus has reminded us to do.
Ally was also hit badly by the buyout of Slot( perhaps someone thought that Ally would be bought instead)
And once again, taking profits (I had it up 42%overall and sold 1/2 ) saved my butt.
Summary:
1. I will be much move active selling to take profits even if its only 20%. Sometimes sell 1/2, sometimes all
2. No matter what stock one owns, analysts are so effective they can tank a whole sector by expanding one negative earnings announcement to imply the whole (P/C, chip, drug, oil )business is going down the drain, so I will be a bit more diversified than in the past
3. To avoid being too much affected by daily news (usually read it wrong and make bad decisions) I will place my best buy-and-hold stocks in a separate portfolio and pretend I dont own them (a self-made 401<g>)
4. IMO this present rally will fail as have most recent ones. I see nothing here that will permit Qcom, Amd, Dell
to break thru the trading ceilings. I could be wrong, of course, but I think Dell is stuck between 23 and 28 and will try to trade it in that range. Hold some, but buy at 24, sell at 27.
Regards
Sig |
