I call a stock a "momentum" if it is moving up, not because of increase in value of co, but because everyone is "piling on" and trying to catch the run. Its like betting with a hot shooter at the crap table in Vegas. But you have "know when to hold em, and know when to fold em." Comp USA was a great momentum stock last year, then missed their numbers, and the stock folded. The whole internet, ie: Yahoo, excite, etc is all momentum right now, the numbers are crazy, but if you can catch the ride and get off, great. I am riding AOL right now, the safest of the internet momentum stocks, but I will be out in a second if we get any bad news, because the mutual funds will take their profits and run.
I am holding twice as much SAP right now as I would normally buy, because I figure their will be a "momentum" run from August to October. If we get the run I will sell 1/2, and hold the rest. If we don't get the run, I will probably get out if I have a better gorilla or king to go to. |
