Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns: -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (3741)	10/14/2014 12:20:04 PM
From: The Ox	Read Replies (1) \| Respond to of 8239

Hope to have time to give you a reply with merit, at the moment I can't do your questions justice....

To: bruwin who wrote (3741)	10/15/2014 9:07:33 PM
From: The Ox	Read Replies (1) \| Respond to of 8239

There are many different issues I look at when considering a new stock position these days. It's changed over the years. I like to look at both the fundamental data available and the charts as starting points, once I've decided to give a company a serious look. From a fundamental perspective, one of the main issues I want to see is a bright future. The ability to generate increasing revenue and/or earnings is a focal point. Similarly, maintaining a solid cost structure to aid in the generation of earnings. I'm probably more lenient than I should be in this area and I'm trying to become a bit more critical. I want to see what's driving the numbers as much as I want to understand the numbers themselves. I'll also focus on the charts to see how the company is being treated by the market. I'm not adverse to "playing" in the momentum area, especially if I believe I can "scalp" some free shares in the process. This in not a common way to "invest" but it's been working extremely well for me over the past couple of years. Ideally, the 2 factors combine to aid in the accumulation process. Knowing a decent company's stock has been weak can create the opportunity to scalp and become a longer term holding. When one evaluates companies in the solar space, there are many different issues to consider. Not the least of which is that they were incredibly cheap and unwanted 2 years ago. In late 2012, CSIQ was trading around $2.50, now they are trading at 10 times that. Opportunity knocked, if one was open to the suggestion. SUNE's chart was similar but their business was substantially different, as they had a larger semiconductor segment which has since been spun off, SEMI. I do think that there's a very good chance that SUNE's future numbers will show a more dramatic improvement than the street sees at this time. But one needs to be cautious of any stock that becomes a "short magnet" and SUNE seems to be one of the companies that's been a target. When the amount of money being bet against a company starts to get "excessive", it's wise to respect the downside. If for no other reason than the slightest amount of bad news becomes a major shark feeding frenzy. Better, in general, to step aside and wait or better yet, just set your price targets for entry at a much lower price than the numbers might imply. Knowing the market and the sector's prospects is a critical element. Back in 2012 when we put together the first portfolio on the Fundamental thread, I recommended UNP. You did an analysis of UNP vs. CSX at the time and it showed UNP's numbers suggested it was a better play. The market agreed, as UNP has outperformed CSX based the chart. Doing this type of analysis is extremely helpful but it's not the only issue, as we all know.