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To: Return to Sender who wrote (1227)11/8/2012 11:44:01 AM
From: The Ox1 Recommendation  Read Replies (1) | Respond to of 8239
 
I've got a very small position for myself and one for my folks with WFR. Nothing that will make or break us, that's for sure. I totally understand when I "go long" companies with large short interest that it may take a long while before they become profitable. My position is nearly flat and my folks is substantially up, so we can be very patient. I would have to start wondering if it falls to new 52 week lows based on the current #s.

At the same time, I know that fewer and fewer people are investing in stocks, let alone beaten up companies like WFR. I heard on the TV that large institutions like Harvard and Yale have 10% or less allocated into stocks. Probably wise to be diverse but I find that # remarkable on the low side. I also think that the sea change made by the rule changes over the past decade or so, like allow companies to be shorted without the uptick rule, creates an environment where any stock or sector can be hammered even more relentlessly than the past.

My views tend to be looking out at 9 months or more. Where is the market headed? Where is a company heading? What is the seasonal trends in this industry and/or for this company? It doesn't always work out but that's my approach when investing.

Day trading or swing trading is totally different. No relationship whatsoever to "valuing" a company. Support/resistance, the trend is your friend, will news create a pop, will all the talking heads on TV try to get the lemmings bullish or bearish at the same time. And so on....