Re: Portfolio Management, WDC/QNTM, APM
<<If a person maintains 8-10 stocks but has turnover of 100% what does that mean?>>
With such a concentration at the heights of a raging, volatile
and possibly crumbling bull, turnover doesn't mean much to me.
If the reason is that stocks are being knocked down 30-70% all
around him/her, then it is logical.
Now, if a person is selling solely because a stock is falling, then
that is an indication of trading, churning, and lack of conviction
as a result of lack of due diligence in the first place.
Personally, when I sell to make moves into other stocks, I sell
the stocks that haven't moved either up or down. My hope is that,
systematically, I will be leaving stocks that are on avg inherently
less volatile and with little market correlation. In this way,
I am maximizing my chances of returning at the same value price
at a point in the future when that stock becomes the best relative
value. If one of my stocks falls, like MUEI, TBR, QNTM, and HYDEA
all did recently, I average down by selling one of the "quiet" stocks. After all, a good value just got better and I want
to take advantage. Turnover can be high, but I see reason in this.
Re: WDC/QNTM; I took my off WDC for a bit and then I see it
at 19. Good price. If I had a diversified portfolio I would
probably have bought it. Having looked into it pretty extensively,
and owing to my diversify-across-sectors strategy, I only need one dd.
Quantum at 25-27 fits the bill as the single best idea, but
WDC at 19 or SEG at 21 are both definitely good ideas.
Re: APM, from what I understand, the current balance sheet and
cash flows and all are threatened with extinction due to
a paradigm shift within the industry that's moving manufacturers
away from APM. There is huge speculation whether APM's management
can pull it off. If not, there is question whether APM can
survive. Paul, could you describe why an investment in
APM is not speculation? Not being critical; just want to learn
more since it looks so good numbers-wise and I do not understand
the situation perfectly.
Good Investing,
Mike |
