Hi Sig: Re your discussion on selling: I'm printing out the message to analyze a little.
Would it matter if the stock is in a tax sheltered or non tax sheltered account?
I ask that because if (of course it wont happen Kemble dont scream at me I'm just supposing) Dell went down in a tax sheltered account I could sell, watch a while and buy back if it started back up. But in the non tax sheltered account that would be a problem.
So of course you dont mean ignore the fundamentals when you set a selling price?
I know what you mean, but it isnt so easy.
E.G. I bought Maverick at 25, had a target price of 35. But after I dutifully sold, it kept going up so I bought it back and now its 50 and I'm not sure what to do. But its overvalued now, it wasnt at 25! (Depends on next earnings.) I bought UTI at 26, 32 and 38. Sold most at 38. NOw its 47. But its overvalued too. Just bought FGII, was ok at 61, but bought more pre split at 79 which is really overvalued already. I'm assuming it will do what uti did and just go up on momentum after the split. And if it does, what is my target price since it is already overvalued? Very confusing.
On the other hand, I am beginning to think that on stocks going down, unless there is a good short term reason, like WDC, it is better to unload, I think you are right. Especially with companies that might be very small, or not really leaders or in the spotlight in a positive way.
Opinions?
Freeus
Of course this is the part of my portfolio that I label "trading". I agree with a message someone sent me saying holding long seems to work out timing difficulties when stocks were bought at a wrong price. (Good companies of course.) |
