<Once the next mini-bounce in the general market ends, there is a good chance we will see a downdraft.>
Downdraft in what? I don't really care about the general market and I also assume you see the distinctions I've made. I'm not playing for a generalized market bounce. I'm playing a specific sector(s) bounce, a new leadership: (G) gold and PM. (O) oil, gas ,energy (D) defense and security. This is hedged 5% with shorts (financials, consumer lenders). The small biotech play of 5% is there because I see some great names selling near net net prices that have been thrown out with the bathwater. These will not be driven by economic conditions either, they will end up being good "bad economy" holdings. The 10% special situations are the pure long value plays, just in case the BOB outcome is a little more benign. They may work (buyouts) anyway. It's time for a little bottoms up work on this kind of stock. The COBR name I'm using has a hot new GPS product on the way that will blow off the shelves, and the stock is totally neglected. I think mgt just pays a 50% premium and takes them private, if the stock market doesn't recognize it. Additionally you can see the short sellers getting more than a bit over aggressive in these names (especially biotech, INVN, ATVI), that's fuel for a rally in them.
Message 18631890
ELN's response to this manipulation and the reason I'm a fan of their mgt:
biz.yahoo.com
Incidentally, I noted two more stocks I failed to mention. TNT, the Russian producer; 0.5% @ 15.16 SH, and OMX: 0.5% @ 4.51 B (4.70). |
