IFLY was a big winner and will continue to be for Internet investors. Many of us have been investing since the 3's and 4's, so we are looking at a 100% gain right now and depending on how we managed our accounts, up to 400% when it did the initial run to 16+.
Profit taking and the first set of IPO restricted stock coming for sale no doubt has caused us to settle down. But, overall it is a very good return on investment. Whenever you buy a stock that has made a large gain, I wouldn't advise buying all at once during the run. For example,
If you wanted to buy $10,000 worth. Buy 25% outright and watch the trading during the day and or week, look for an entry point for the next 25%, and so on. That way your position reflects that average trading price over a longer period of time than just one trade can get you. If the stock continues to run, then you made a profit without risking the entire position. If it comes down, then you can start reducing your overall cost. If the story does not pan out and things change, then you minimized your exposure.
Too many times investors get caught in the short-term momentum. A long-term investment strategy works well with momentum stocks as well. This strategy has paid off not only with IFLY, but also with CDSC a stock I have been following since the summer. I started investing in the 6's, it went to 7's and then it ranged within 3 1/2 and 5 since then. Recently it went to 9+ on its Internet initiative. Now it is settling in the 6's with its Internet products coming to fruition this quarter. The point being made that a long-term strategy allows an investor to survive the vagaries of the market, while still allowing him to trade with good percentage gains as he manages his long-term position.
IFLY is doing very well for those who have and continue to follow it. |
