I've got to come down on the bear side here a little, too. I mean that for the general market. TAVA is a story stock and in the stages of forming a base on that story. TAVA will not correlate well with the S&P 500 over the next two years so it is being used as a diversification tool in my portfolio. That means I'm long and buying on dips.
I usually ignore the general market and don't try to time it, but I do try to prepare for it. That means that I try to not buy "market stocks", that's what index funds are for.
I do agree that, at this stage, the chances of a significant correction are great. Mutual fund cash is very low, and the last bears are turning bullish. Moreover, general earnings growth is weaker than last year but the market prices are stronger.
I think TAVA is a strong stock, a growing company, and still a good buy. But it still involves a great deal more risk than GE, if someone points that out, they should not be censured. You don't have the opportunity to get a 4-bagger (my results so far) out of low-risk stocks.
Someone once said, "In the stock market you generally get what you pay for, try to get more, and you generally get what's coming to you."
In the case of TAVA, you get a large potential upside, and you pay for it in dollars and risk. It's still a good deal for me, and the news only gets better.
But as to the rest of the market, I have to agree with Tim, I'm raising cash. I don't think current valuations are sustainable given current earnings.
Zebra |
