| | | On The mIRC 50%gains chat board, we have all types of investors. One who is focused on the technical charts and 'swing trades' provides the group w/ some good candidate stock picks. ICHOR was one of those as he said it was a good 'set-up'.
I generally will review, do my own value scan and if I see that it meets my undervalued criteria, will buy a starter position. I not only look at the GN value, but sector, does it pay a dividend, is their growth and/or reason for EPS fall off, does management have a plan and/or is a theme stock.
So if the technicals line up (along w/ other factors) and there is value, I will start a small position and dig deeper into the company. The GN does provide me a minimum exit price and that helps me w/ my Sell decision.
So our group does provide many new ideas and only a few of those ever pass the GN value test 'for me'.
FWIW, IIN came from the same contributor but did not pass my GN test but was one of a very few micro-small cap medical devise companies that actually posted earnings (ie profitable & growing).
I look at a lot of companies each week/month/years and have a pretty good idea of what value is vs speculation. The key for me (and survive over the last 30 years) is to understand the downside risk of each investment, try to minimize that by buying value and only expose a small percentage of the portfolio to any one investment and/or idea.
Paul's basket approach has helped me significantly as I like to hold long term and if my theme on my basket (as I build the positions) is correct, the investment generally works.
Good investing
EKS |
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