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Strategies & Market Trends : Contrarian Investing -- Ignore unavailable to you. Want to Upgrade?

To: pcyhuang who wrote (233)	9/18/2006 11:36:11 AM
From: E_K_S	Read Replies (2) \| Respond to of 4080

Hi Pcyhuang - I was actually looking for a "historical" view of a contrarian pick which say has 18-24 months timeline. Would you say that MRK was a candidate in Dec 2004 and again in September 05? Also, when I begin to accumulate a position I use several different methods over time. I will write naked Put options, buy a small starter position and hedge with in-the-money-calls that allows me to watch the company w/ minimal risk or even on capitulation just make an out right buy. I guess my point is that once a potential contrarian stock candidate flashes up on the watch screen a series of investment strategies should come into play. As time moves forward, the stock pick meets the conditions for a timely play or news events dictate that you should stay on the side lines (ie. litigation News). In the case of many of my buys where I have used contrarian investment criteria, I have found that it's a long term play that yields the highest returns. It usually takes 18 months for the complete picture to resolve it's self. What is the average holding period for your contrarian investments (days, weeks, months or years)? Just more food for thought.... EKS