Turds, Traders & Superstitions...
Have you ever seen a baseball, or basketball
player go through their little superstitious
routines?
In baseball you see hitters go through damn near
two minute pagan rites while getting themselves
ready in the batters box.
Everything from a basic cup adjustment, to making
the cross, tapping the plate "3" times (not 2, not 4),
tugging their collar, twirling their bat in vertical
circles and adjusting their helmet just so...
It's not any different in basketball. You really
see it at the free throw line. They lick their lips, or
hold their tongue a certain way... bounce the ball
"x" times... add a reverse spin to it - so it bounces
back to them and then a cursory double wipe of their
hands on their shorts before finally taking the shot.
In football you'll see players who have worn the same
under-jersey, lucky t-shirt for years. I can think
of at least two hall-of-fame quarterbacks who did. Others
when running onto the field during pre-game warm ups, either
must always run between the goal posts, or can't step on
any of the yard line markers during pre-game.
Traders are no different. They have their lucky charms,
trinkets, bobbles and routines too.
And I'm included.
So I have a confession to make...
Anytime I've had a great run, I take a small portion of
my profits (now I'm talking about my personal
account here) and I'll scan my list of stocks that
I've previously passed on for one reason, or another,
and who are usually so severely hated, beaten down and
over-sold that no one is buying them...and I'll do what
I call...
"Throwing a Virgin to the Volcano"
I'll take some of that mad money and buy a really
battered, beaten down stock. Something that is dirt cheap,
but still has a breath of life in it...and ideally, has
the chance to turn into a doubler, or even a triple if
it bounces back.
So over the last couple of days - I've been throwing
a virgin into the volcano by buying PAL.
I know... I know... the chart looks like a real turd.
BUT!... remember here.... we are:
"Throwing a Virgin to the Volcano"
We are making a sacrifice to the trading gods,
and we're using our "mad money" to do it.
And besides, I'm an optimist.
The way I look at it, is this...
... turds float!
-- yes, there's been massive dilution...
-- yes, management sucks...
-- yes, they blew a quarter...not the first, not the last...
...so tell me something we don't all - already know.
Hey, if you got some "mad money"... an unexpected
windfall profit from those insurance money puts,
from shorting Fannie, or Freddie, or something else...
You just might want to take a look at my little
turd that could...(hopefully float).
At the least... I think we'll get a nice little trade
here out of it.
At the worst... we keep the trading gods happy!
Ever poopfully yours,
Turd Man
a.k.a. -- S.O.T.B.
Oh, and PS:
You just may want to take a look at Palladium here too.
I'll tell you why later... |
