Tom, after flailing around and trying different stratagems with varying degrees of success, I have hit upon something that works great for me. I buy good solid Internet related companies, and hang on. I have owned EGRP and ATHM with the occasional dalliance in CDNW and AOL, and with patience, have done well. Twice in a month, prices have fallen DRASTICALLY, and in both cases, I missed the chance to get out and buy on the HUGE dips, but in both cases, the price came roaring right back and into the black. Even with the dips, I am up 38% for the month. Companies like AOL, ATHM and others that will be around and are making money, even if only a few pennies, seem like better bets than YHOO or AMZN to me in the short term.
I also have largely stayed away from the smaller REALLY short term plays hoping for the next big thing. I haven't had the daily rush of trading heavily, but it's very cool to see a stock up 10 points on the day.
I am now still heavy in EGRP and will hold, but am playing a few smaller plays that Wayne and Sting found - IDTC and SDMT.
I am also playing what I consider another safe Internet related play - PCCC. If it falls, I think it will eventually recover, but it is not IMO ridiculously overpriced at the moment (whatever THAT means).
For your quick churn moves - look at CDNW and CIEN... if you can catch their rhythms, you can pull a couple of points a day from them, which amounts to 10% or more - and if they crap out a bit and you mis-time it, chances are that they will come right back up in a week or so..... I also pulled close to 2 quick and easy points from CPU this week.... all good stocks that I will play over and over. I may even start to keep some free shares in the event that they join ATHM in the 100 range....
I guess my point is that there is some inherent danger in the "next wave" of internet stocks... companies that haven t yet made it, may never make it. There are to be sure some out there that WILL make gobs of money in this craze, but a hefty part of my portfolio is in the ones that are already there.....
Cheers
MG |
