Hi Marty and Cisco and everyone else,
Marty, I love the quote at the end of your last message! It definitely fits this situation (well, except that we don't have any facts, or even rumors, to go on). We just have to remember that not all of St. Peter Lynch's picks worked out, and some of those that did, didn't work out for at least 5 YEARS. I've only been in this stock for 5 months. 5 years doesn't look like a long time when you are reading a book and looking at a table of past performance, but it sure looks like a long time when you have just bought a stock and it doesn't do what you expected. There is nothing to do in this situation but wait or look for a more exciting stock.
Cisco, thanks for the note on the CNBC clip. I wonder why they didn't mention BNDCY? I am thinking that to the general public the Tamagotchi is being thought of more as a commodity than an investment opportunity. If Bandai announce spectacular earnings from this phenomenon, then people will notice the connection (I hope so anyway). As big as the virtual pet craze seems to be, I think it still has a long way to go to build mass-market product and brand awareness. Remember that the whole phenomenon is still only 10 months old. There still aren't a lot of news stories about Tamagotchis (and much less about Bandai). People are just not going to see these stories unless they look for them (the way all of us here have). And the small supply of the good brands isn't helping to build the brand awareness. I truly hope this is a case of manufacturers not being able to produce enough supply and not a case of manufacturers keeping supply artificially low to keep demand high. If it's the latter case, they are probably hurting themselves by still doing that.
If you are thinking about buying in, but waiting until the price moves, you may be better buying now before it moves. I waited until it started moving up, and right after I bought, it stalled. If it is going to keep doing that, the only short-term profit you're going to make on it is in that quick move up (which lasted less than a week if I remember right).
On your off-topic comment, are you invested for the short term or long term. If the long term, just sit back and enjoy the rooler coaster ride. If you get some more cash to invest, start looking for buying opportunities. I did really well with that technique a year ago when I bought INTC and MSFT. I saw on CNBC this morning that Ascent Communications has dropped almost 40% in the last month. That might be an excellent buying opportunity to look into. Disclaimer: I haven't researched that company at all and I am not recommending that anyone buy or sell this stock. If you're invested for the short term, good luck, and why not consider investing for the long term instead :-) It's much less stressful.
CNBC said this morning that the market could keep ratcheting down over the next month or two as people become pessimitic on rumors of bad earnings reports in the blue-chip companies. I'm in for the long term, so I'm ignoring the pessimism and waiting for reactionary investors to come to their senses. I'm also remembering that the market has had a HUGE runup in the last year or so and probably needs to readjust to more reasonable levels. I am also hoping that the large-cap investors stop pumping up the DOW companies so much and start looking at the better values in the small-cap markets.
Good luck to all,
Kirk |
