Most excellent Post Part II
By: JCer
Tuesday, 29 Jun 1999 at 9:47 PM EDT
"More thoughts, technical analysis & diatribes."
This is essentially a follow up on my previous post....
Warning: this is a long post....read with caution but be careful, it could change your life. =)
BTW, I misworded something on my previous post:
"....well, there are certainties and guarantees in science but any moron can
figure out that STRU's pigs could sure benefit modern science & researches by at least
reducing the chance of a diseased pig to almost nil...."
What I meant to say was"
"There are NO certainties or guarantees in science but any moron..blah blah blah"
Also, I want the group to know that before I rode the STRU, EDIG & SNMM bandwagon, I was heavy into CMOZ.
and if you follow the history of CMOZ as well as EDIG, certain patterns will emerge.
1) In every stock, there is a "initial breakout period"....this is when CMOZ shot from a few cents back in November to 5.00 in January....most of this buying is pure momentum pumped up buy day traders, frenzy, hysteria and hype....
2) Next is followed by "sell off"...major profit taking ensues
3) Accumulation is next...which can sometimes take weeks even months.
during this period, the company can issue the best PR's in the world and the stock still won't move much....this occurred with CMOZ for March & April...
4) Once accumulation is over, substantial news is released that takes this stock beyond previously established new highs....this was after the debut of CMOZ's web site on May 15th & the stock hit new highs of over 6.00
I use CMOZ as a case study, not because this is the only example but because it was where I had my money in....if anyone of you take the time to read any "day trading" book at your local Barnes & noble, you will see the same type of analysis...in short, ALL stocks follow the same pattern:
1) initial breakout
2) sell off
3) accumulation
4) next breakout surpassing previous highs
I use CMOZ as an example because i first bought around 90 cents....then more at 2.25 then some more at 3.20....and then the stock tanked back to lows of 93 cents which tested my faith and mettle..., nevertheless, during this period, i did nothing but read every single book on investing and every pertinent web site on investing and kept up to date with the message boards.
The other half of my portfolio was put into SNMM and it rocketed from a 30 cents to over $17...this is no joke and you can see it yourself....I sold around 8.00.
but back to CMOZ....it took about 5 months, but when it ran...it really took off.
I sold CMOZ and reinvested in EDIG which followed the same pattern.....EDIG is probably ready to graduate to the "next breakout" period after 2 months of accumulation and "channeling" (which is when a stock trades in a range back & forth)...I expect EDIG to surpass it's previous high of 3.50 and trade within the 3.50-5.00 range by the end of the summer when all the lucent/TXN/lanier/SDMI news is released.
As for STRU, we all know what stage we are in.....it shot up to near 60 cents more than a month ago during the initial breakout & frenzy and was followed by sell off...right now, we are entering the "accumulation" phase which is quite normal and quite honestly VERY NECESSARY for a stock to go through in order for it to reach the next levels.....any stock technical analyst can write volumes on the accumulation period and why it's important.
In short, all short term investors, day traders & profit takers sell during this stage and are replaced by new buyers....these new buyers are mostly long and aren't stupid enough to sell at idiotic 5-10 cent gains....they know the TRUE value of the stock and are holding out.
Once more & more stock is in the hands of true Longs, they eventually "corner" the market and have a death grip on the stock....and just when the next substantial news hits (contracts) and buying pressure occurs, there is a sudden shortage of stock because the Longs know the longer they hold, the more it goes up...frenzy feeds on frenzy and the stock makes another huge run.
This is a classic pattern and happens to virtually every stock but is all the more magnified in Penny Stocks since the movement occurs much greater and shorter time intervals.
In summary, we are going through accumulation right now....people who have no patience or any leftover 504 shareholders are the ones selling....obviously if you are to buy STRU at this level, your only justification for doing so is that you believe in the upside potential of the stock....low volume during accumulation is a good sign...it means the day traders have taken their pump&dump hype elsewhere...it appears that 15cents is our base for now and that's fine with me....I anticipate we will trade within the 15-20 "channel" until the next significant PR is released...and with every substantial release, we will form a new base.
Like I said in my previous post, these prices at the floor don't bother me one bit! in fact, I only, accumulate more shares!
A historical footnote: many fortunes are made during periods of stress & crisis....some of you obviously think STRU is undergoing crisis right now....this can't be farther from the truth but because most of you invested in the stock PRICE rather than the STOCK ITSELF (that is, you bought purely to sell the stock at a higher price rather than investing in the company) you have this twisted notion that the company must be in trouble since the price drops.
This is what separate traders from investors.
If you only did your DD and know what myself and other Longs on this board knows, you would realize how foolish you are....we don't share ALL the info we know for a variety of reasons but rest assured that many of us know much more than what we reveal to this board.
(one reason perhaps is because we are secretly rooting for the stock to remain at bargain basement prices so we can buy more)
I don't know if I'm a bashed or hypster for what I post the message boards, but what's funny about both bashers & hypsters is that irregardless of what are motives might be, we are both long on STRU.
Bashers want to scare people into selling so they can buy more...
Hypesters want to pump this stock up so they don't see their investment plummet...
Funny how both Bashers & Hypesters can believe in the same thing yet behave in contrasting methods.
of course, there is a whole 'other category who are simply frustrated...they bought the stock high and feel they completely overpaid for it...they can do nothing but panic and express frustration and resort to further bashing due to impatience...they blame management and find every negative angle to do so....
I don't have a word for this category of people...frankly, my dear, i don't give a damn to these weak/frustrated investors....If I had my "d(ST)RUthers" I would prefer these people to sell at a loss so they can be replaced by the Long Term believers like myself and new investors....Why?
because the minute the stock starts to move, they will cut their losses or break even and sell because they simply don't have (or possibly never had) the psychological foundation to it takes to be a successful investor.
I could go on and on about the Psychology of Investing but I don't want to be your freaking ZenStockMaster nor do I want to be your shrink. all i know is that success is a state of mind and there is a reason why in the past year, I have only lost money in one stock and have profited enormously on four others (SNMM, CMOZ, EDIG and now STRU....i took a loss on GOIN because i, too, have made stupid mistakes and have learned that there is no thing as "short term profits". The good news is that I only loss a small portion on GOIN and see it as tuition for momentum trades without fundamental support.....speaking of which, if anybody needs any toilet paper, I got plenty of GOIN stock certificates to use.
I seriously recommend many of you to buy some books about the psychology of investing and quit whining like a bunch of starved piglets who haven't been breastfed by that ill-fated Pig in Charlotte's Web. =P
Okay...I think this is enough for now...and I think my past posts speak for themselves..
- I'm long on STRU and have stated my reasons why.
- As you can see, I have mixed feelings for the current stock price....on one level, I don't want it to rise too high so i can accumulate more shares for every few grand i save on my bi-weekly paycheck.
- From now until the big revenue contract is, I will be buying & accumulating. I don't need to speculate on the When, Why's and How's for now regarding the release...i have my own theories for the delay and obviously feel good enough about them to keep buying
- My motive for posting is to share to any insecure STRU holders or any potential buying that all is well...and this is a golden buying opportunity.
- For any impatient, frustrated, weak investors, please sell your shares...I could care less about your concerns...if you are too lazy to do you DD or don't have the mental capacity to play penny stocks, then sell....I would feel much better if your shares were in the hands of Long Term Investors who have taken the time to do their DD, who have the psychological makeup to play penny stocks, who can afford buying at 30 cents only for it to drop down to 15 or 10 cents because they did NOT overextend themselves, pawning their cars & wives away hoping for some quick get-rich-quick, momentum trade that will take them to the promise land. These long investors know the true value of STRU and the more shares they get, the faster STRU will spike on the next big breakout period because they will be holding for higher prices which will only lead to a higher base in the future.
The Long Term investors are the ones that deserve to profit...not the ones who whine, bitch & moan about "Where's the news???" "Why is the stock going down??" "I deserve better treatment from investors relations!!!" "Why are my diapers wet???"
Get a life folks!
There are plenty of Longs here on STRU that have been here from day one (which, in modern era, would be around the beginning of May)....I would prefer they get an opportunity to buy your weak shares so they will profit more in the end rather than babysitting some short-term trader who has the self-esteem of a sea cucumber, who is too lazy to do their DD, who wants to be spoon fed information, who can't stomach occasional price drops.
How many stocks out there have the upside potential of STRU?
All we need a significant revenue contract--or should I say contracts since that is what will occur--and we will easily see 1.00....even at a 1.00 this company is a steal...i don't need to speculate because I'm not a hypster but how many opportunities offer the luxury of the stock market? All you need to do is sit on your ### all day and wait....Time is the only X-factor in stocks. Do you realize how lucky are?
The fact that you have access to the internet and have found yourself reading this message shows how fortunate you are....There are millions of people who want to invest but can't because they can't come up with the 1,000 minimum required to open an account....they don't have internet access for whatever reasons and even if they did, they haven't had the fortune to come across such a high upside potential stock as STRU.
Having grown up in Asia, I've seen my share of poverty, illiteracy and misfortune. My parents worked their butts off as immigrants because that's the only skill they had...labor. They had no knowledge of the stock market, hardly any capital, and absolutely no access to information like internet message boards where information can be exchanged.
We are living in an exciting period of an "investment revolution"...just think: for the first time in 1996/97, there was more equity in the stock market than there was in the banks...then just last year, there was the first ever decline in equity put into mutual funds....so where is all of this money going???
Easy: never before has the individual investors have access to information that was never available or accessible to the public. To think about all the technical analysis in clear station along with the mutual win-win situation in investment message boards, to free real time quotes, online trading, etc etc....
I know I've been babbling the past few paragraphs, but I honestly think we take a lot of things for granted. Some of you realize we are sitting on a gold mine, some of you obviously don't for a variety of reasons, none of which I particularly care about. I am putting my heart on my sleeve the past two posts for the Long Term investors....without some of them, I myself wouldn't have been convinced to invest in STRU.
Within the past year, my life has changed due to my online investing....I first started off in boring mutual funds where people have an orgasm with their silly 30% returns and gradually I played individual NYSE and Nasdaq...and have been entrenched exclusively in pennies due to what I've learned.
I've made more money in one year than my parents have made in a lifetime and I take none of it for granted. I've learned from my mistakes but have prospered mostly due to the long hours I spend on the internet reading message board after message board, talking with other investors, reading tons & tons of books on technical analysis, fundamentals, day trading theories and psychology....I have paid my dues...have you?
if not, maybe you don't deserve to profit.
I'm sharing more than i need to right now because I know this stock will be my "swan song"...after STRU surpasses several dollars and i sell next year, I probably have no motivation to play penny stocks anymore because I will be facing the similar dilemma as Berkshire Hathaway...when Ted Koppel asked Buffet why he only invest in blue chips, Buffet replied:
"We take a long time before we invest any money in any company...but when we do, we invest tens of millions...the problem with investing in small caps is that we would end up owning half the company and would not be able to sell without crashing the market"
That will my situation next summer....before I put any $$ in any company, I spend hours & hours of research...but when I do, it is a significant amount and it would be foolish to continue playing penny stocks if I could not liquidate without crashing the market....After Stru, I will be exiled into the tortoise-paced returns of mutual funds and bonds.....*YAWN*
Consider it fate that you came across STRU....and don't take it for granted what the investment revolution has presented itself for you. All you have to do now is accumulate and wait. It's that simple. No drug deals, no get-rich-quick schemes, no back stabbing....this is the easiest way anyone will ever get rich and all that it entails is patience, perseverance and faith.
And as Eddie Murphy once said in "The Distinguished Gentleman":
"If you can't stand the heat, then get out of the kitchen!"
PS...I won't be posting for a while since i do have a day job...it's not my style to posts everyday....take this posts for what it is...I don't care if you call me a hypster, basher or whatever...all i know is I'm VERY LONG on STRU and what I write is from the bottom of my heart (which probably explains why I repeat myself, digress and babble at times)....I started with just a few grand just like all of you and now online investing has changed my life forever. right now, it's not about making money...it's about being a "winner" and let me reiterate the Zenmaster thoughts of Tony Robbins...."Success is a state of mind...you are what you think."
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