Berney; RE:" XTC.X and PNX.X "
Thanks info, Berney. Have you been giving any thought - as I have - towards creating some kind of P/A Performance Analysis concept, to go along with our F/A and T/A ?
Thing about F/A is that it is ideal for long-term investing, (like getting married) but in reality all we want is capital gains. If LRCX can give me 20% underlying movement and 50% leveraged in 30-60 days, I don't really care too much if they are in the red.
Thing about T/A is that it is fine for timing entry points, a bit weaker for exits, but ignorant of the forces underlying its trends. If I'm plugging into a growth curve, or cycle, I don't really give a hoot's patootie about when or where I enter, nest-ce pas ?
Take HWP - Using F/A, I included HWP on my watch list because I felt the company had underlying chutzpah. I bought speculative, trader-like Aug 65 CALLs when it triggered a "buy point" around 60-61 on my T/A, and I felt the stock had moxie. When it hit 66 I cashed in and "invested" the 20% profit into JAN99 70 LEAPS. Now it's popped +3 up to 70 on some analyst's upgrade, so I've cashed in the LEAPS, selling into the strength of this morning's buying frenzy. Sans F/A, I never would have been looking at HWP in the first place. Sans T/A, I never would have found the 60-61 entry point. All else was dumb luck, IMHO. The point is, Berney - when HWP was at that 60-61 point, there should be some kind of P/A green light on our dashboard; when it (F/A + T/A) all comes together.
BTW, noticed you F/A boyz are using ROE - back many moons ago when I was in the game, (1976-79) we were using ROA. Is that out of fashion now, in this new world of intangible assets ?
-Steve |
