Arnie Re: long term investor strategy when the market stalls.
It's kind of slow tonight on SI, so I thought I'd introduce, for your opinion, one of the strategies that long term Nextel investors must be comtemplating. This has nothing to do with the product or loyalty to the company, just investment money.
Lets say, The Nextel investor made the primary investment when the stock was, lets say 15 per sh. Sat back and watched his or her investment climb to 32 and then retreat downward. Didn't sell on the way down because the stock was volitile and could rebound to a new high. Now the stock has continued to retreat downward and seems to have stagnated at the 24 mark.
At this point, the investment is not working for the investor. Wouldn't it be a good move to pull out, invest in a money market fund temporarily, until movement up happens, then re-invest. If the stock moves up slowly, the reaction time will not cause a great loss of position. But on the other side, if the stock gaps up when the market is closed, there could be a 2 point loss of position. Small gamble when you think of it. Is it possible that big traders are doing just what I described, and the sales are not dumping by X McCaw?
Al
The nextel phones still will work well, the company will not suffer in any way etc. Should this investor be called a traitor, a non believer? I don't think so, do you? This has nothing to do with PT Barnum.
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