Tom,
Thanks for you comments. Indeed we have a little bit of the difference in terms of our strategies. I totally understand that your way of buy and hold is a traditionally rewarding way of investment. But I think we may do a little better by jumping around on finding the best short term gain potentials. The reason I think it may come out better is simple, a stock may be short term extremely oversold, like VTSS at $20, NANO at $5 and CATP at $18. Therefore the chances that they get a major initial powerful rebound is very visible. This has been proved by all the three stocks I've picked in the past 6 weeks. But once the initial recovery is done, which brings the stocks back to somewhat fair value, the further gain will depend on extra forces. In the case of VTSS, we moved from $18 to $28 in about 2 weeks. Since then the stock appreciated another 10 pts, but I think that gain is tied with the general market's sentiment change, while the initial 10 pts gain was a definite play, with or without the general market's co-operation. So, my strategy on looking for these temporarily depressed stocks may work out well if I can continue to find a near bottom candidate. One very important note here is that, I always look for good stocks that temporarily suffer from short term problems, such AMAT, NANO and VTSS suffered from SEMI downturn, CATP suffered from IT's Y2K problem. All these stocks are either the group leaders or a very potential long term winners. That's why I am so confident that they will come back within a short period of time.
Looks like we both have been doing well on our strategies lately. It's Thankgiving time, so let's enjoy the gains and have a good time!
Regards.
MB |
