There is no logic to what goes on here. That is why it is confusing.
As investors we have to match our moves to logic (company
fundementals) modified logic (technical analysis), and guessing
(catalysts, events, trends, cycles, momentum, and the worst of all
human emotion). The stocks I try to own have to have all of the above
going for them. ISLI had it before. Now the merger (event) and the
market crash (human emotion) have taken center court and create
turmoil. I will buy ISLI back when this crash settles down (I dont
know when that is but Monday is not one of the multiple choice
answers) and we get closer to the actual date (When is the date
anyway?) and MIFGY settles in around 26. If these dont happen then
I wont buy. We dont have to own ISLI. We want to badly but we dont
have to. There are other things around. Anyway, the spread gives
us a cushion, the merger will happen because it is viewed as strategic
and accretive, MIFGY will be sitting on major support, MIFGY is still
getting good reviews and buy recommendations, and our friends in the
UK tell us it is one of the cheapest of IT stocks listed there. So
it is prime to test the 32 - 33 level off of 26 in any mid-September
rebound (or earlier). This is what is nice about cash. You have
assets to work with and no pressure to do anything. So we just need
to take a break from the craziness and sit back for a while and be
patient. ISLI/MIFGY are actually acting a lot better than a lot of
other stuff I follow or recently owned. In a perverted way that is
a measure of confidence and a reason to put ISLI in the top quarter of
any repurchase list. |
