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Strategies & Market Trends : Value Investing

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To: badi_ who wrote (43605)8/2/2011 12:25:20 PM
From: geoffrey Wren  Read Replies (1) of 78844
 
I'd be interested to know your exact parameters for picking Black Swan stocks. It seems at least partially subjective, but maybe that is my misunderstanding.

For awhile I watched the large daily down movers of stocks. Arguably there are many stocks that over-react to the downside on some bad news. But I figured I could not quickly figure out enough about unfamiliar stocks to make a practice of looking over those stocks.

I am a little intrigued by binary stocks. By this, I mean stocks that will either do well, or go out of business or nearly go out of business. A stock in bankruptcy reorganization or a stock with it welfare dependent on a lawsuit is an example, or for that matter a small cap stock that has put everything into development of a drug. If you do your analysis, you can find some good buys with these. But my impression is that to buy a field of these stocks would not be productive.
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