tippet, well we know the game plan as spelled out by "ace" financial columnist Andy Kessler. Just buy stock in a company that's somewhere in the supply chain for the PC industry, wait for the "inventory correction" to take its course, and if you somehow find yourself sitting on a 50% loss, just dip into your unlimited reserve of investment capital and buy more.
I mean, we all have unlimited reserves of investment capital (generally, I throw some magic beans in an old coffee can, add water, utter the words "turn into cash", and the next morning presto - hundred dollar bills!!!) and it's not like watching a stock go down day after day would make you think "hmmm...is it possible that I could get a better return on my assets if I changed some of my holdings" or you'd possibly even get a margin call or anything like that.
Go find five and buy them over the next two months. As much as I hate to say this, the uglier the better. I'm not going to give you any names[although he does mention a certain DRAM player n the following paragraph]-- you can generate a list yourself -- but be warned of a bumpy ride. It's impossible to buy exactly at the bottom, although everyone claims it can be done. These stocks may halve again, but if that happens, buy more.
Ugly is good? No wonder I haven't been lucky enough to get to do the "buy more when down half" thing. So I should go out tomorrow and load up on "ugly" issues like IOM, KMAG, APM, ALSC, and CRUS?
But what do I do if I lose?
These stocks may halve again, but if that happens, buy more...
Oh, okay. No problem.
Now where did I put those magic beans again? <g>
Good trading,
Tom |
