I understood Craig implicitly; I "blew the analogy out of proportion" to make a point -- obviously I didn't.
Using your analogy, I still contend the guy lost the $1000, despite the fact that he has his original "investment" in his pocket. I know what you mean but my/your analogy loses meaning because we're assuming all of this happens overnight - like one session at a gambling table.
Suppose I invest $5000 in MRK and after two years it's worth $10000, and i sell half of it so that i still have $5000 invested. Over the next three years the stock increases in value to $17500. I then sell all of it and invest the $17500 in Centennial Technologies. After two years the stock is worh $32500. A year later whern the stock is worth $50000, an annoncement comes out implicating the CFO in stock manipulation and fraud -- the stock drops to virtually nothing. Craig would say _-- Hey, I broke even; I would say I lost a hell of a lot of money. In fact I did lose a hell of a lot of money on CTN when this happened,and yes, i've even seen ZOLT drop 30-40% in a few months.
Months back, Craig told me to buy the stock, tuck it away and forget about it, that's what he did/was doing (turned out to be an excellent strategy) Now he tell me that he's been trading on highs and lows (what a market timer!!) and has gotten his risk basis down to zero. I'd love to see the credible level of timed trades he used to do this -- I think it's HS.
For all of the long investors in ZOLT , I wish you continued success; i will continue to point out what I consider inconsistencies between public announcements and reports to the SEC. |
