Sector plays
every so often I jump on my sector bandwagon; well here we go again
if I look back over the years many of my best trades have been sector oriented ones; ie, find a sector that has become out of favor, is beaten to the point of an oversold extreme
then find the best/better companies in that sector, wait for them to bottom out, then jump onboard
as I have said many times my biggest mistakes at this have been to get on a bit too early and get off a tad too soon; that is something that I have to work on but does not negate these kinds of plays
the best recent example of this is the leisure/luxury sector
the street was saying that due to the upcoming recession we would all stop doing things like take a plane, a cruise, rent a car, ski, gamble, etc etc
a few examples of stocks I posted on in the last 10 days or so and the change from Thurs low
RCL +38%
CCL +33%
HRZ +23%
AVI +24%
HLT +29%
FS +12%
MTN +23%
average +26%
even if we only got a piece of the above those and many others would have given us a 3 day return in the range of 15-20%
while I know that things and times do change they just do not go to hell overnight in many cases
and, I am not talking about a sector that has gone down big due to major and overiding concerns, ie, fundamental changes; such as the oil service, banking, chip/semi sectors
those are down for solid fundamental reasons
I am talking about solid, profitable, and growing companies whose stock price has been killed due to a perception rather than an instant reality
thses plays seem to come about maybe 3-6 times a year
if we can identify them and then play them right they will give us huge returns; always have, always will |
