Mike,
PRMO & TLC were great buys at the time because they did run up. Any stock is a great buy if it runs up after you buy it. Do you own these two now or have you taken profits? The secret is knowing when to buy, but I have found it just as important to know when to sell. "Know when to hold 'em, ...."
My point is that the big gainers Paul listed were not, with a couple of exceptions, traditional 'value' stock buys. They were very good and well researched, but still speculative.
Paul - From that period one definitely stands out - SNDK. On news that they would have lower than expected earnings, stock fell from $17 to $8.50. I caught the drop and went in heavy. This was nearly BV for a company with $60M cash, PE of 14, and major growth. It lingered there then started up. I sold it off when I felt overvalued (PE:Growth) yet it has continued up and is now selling for $35.00. The wild thing about it is they've shown flat revs and lower earnings the last two Qs, actually showing a loss on operations saved by Royalties and interest income. Everyone thinks it will be the next Intel yet they have major competition from other companies, one with a better product and diversification. (I have FLSHF)
Do I wish I hadn't sold SNDK so early? Of course, but I would do it again. It went overvalue at 17.00, but the market likes it at 70 PE.
You are familiar with the parlay of DSWLF (14.75-22), into NTAIF (13-22), into ELAMF (8.50-11.25) that started about then. These were 3 undervalued companies priced right at the right times and provided over 300% gain in about 3 months.
I don't make recommendations, but I own and have posted to this thread: AMTD @15.625, SWST @16.00, and more recently were JWC @8.00, NH @25.50, and CMIN @16.625. Latest buys are ELAMF and DSWWF, both owned earlier and now rebought. Mistake I posted was NATS (sold when they borrowed money at 15% interest). I made the 5% dividend as profit.
My single best buy this year has been SWST @16. On post bell report of 10% dividend, I doubled up at 23.75 before the bell, shorted entire position at 28, sold the double @26, rebought to cover short @23.5. I get the 10% stock dividend plus regular dividend. Position now <$4.00. AMTD has also been good.
I haven't had a worst buy. I sold WBB at a loss I didn't need to take and I really blew it on BOTX. I had a large note in my file on it 'don't sell until after earnings report' and still blew it.
Posted too much, don't know when to stop when I start.
For what it's worth,
Ron |
