THREAD HONOR > > : FORBES MAGAZINE "Top 10" Stock Message Board On The Net (March 2002)
forbes.com
NOTE: Please read disclaimer at the bottom of the page
INTRODUCTION
What's this thread about? Simple this -- sound advice, lively discussions, and sensible stock picks (from microcap to large cap). We primarily seek out stocks of fundamentally sound companies, with sound current fundamentals and excellent future potential, then attempt to buy them for the short or long term at an excellent entry point. We recognize that some require long term holds to reach full potential and others are too risky to even hold overnight.
OVERRIDING PHILOSOPHY
I am more convinced than ever that the best way to be successful is to BUY QUALITY STOCKS AT THE RIGHT ENTRY POINT. In other words, maximize reward and minimize risk.
"Quality stocks" are those that have reasonable PE's, PEG's and Price to Sales, fundamentals and a good track record. I also like stocks that have good volume, as too many with under 200K or so per day are more easily manipulated. It should be noted that I normally don't short stocks, although I do buy put options occassionally. The "right entry point" is best accomplished based on chartwork, news analysis, fundamentals and the patience to wait for the Reward to Risk to turn strongly in your favor. Reading the psychology of the Market (i.e. the Fear/Greed ratio) is also critical as an overly negative or euphoric market can overshadow T/A or even fundamentals for a time.
A FEW OF THE THREAD WINNERS THIS YEAR
ACF - $18/22 to $40+
SGR - $18/20 to $33+
MIR - $8 to $14+
DFXI - $28 to $41
CRUS - $14 to $20+
RFMD - $15 to $21
FNM Options - 700% gain at peak
HAL Options - 550% gain at peak
RAZF - some got in @ 20 cents and sold at nearly 400% gain. Other still holding
FONX - .095 to .156 (same percentage as $9.50 to $16)
Of course, we realize that we cannot always win, but try to limit short term pick losses to a 1-3% loss (more leeway on long term holds, of course). We try to maximize gains on winners if fundamentals and the overall market remains favorable, but many of us end up selling early, but that's OK.
PLAYING THE ODDS AND KEEPING AN OPEN MIND
A stock that pulls back to support from overbought levels for no fundamental reason is the ideal candidate, especially if the Market and sector is looking favorable at entry. We also consider special situations in less than perfect candidates and Microcap stocks as they are getting noticed again. Ditto, stock options since we have had some major success recently with gains of 500-700% on a couple of them recently.
SECTOR DIVERSIFICATION
We love technology like the next guy, but we need to pay careful attention to sector rotation. We rule out no sector, so we track various indexes and try to identify the strongest "best buy" candidates in each. Technology may not be the best place in 2002, so it pays to diverisfy and expand our watchlist. This includes a mix of microcap and low-priced Nasdaq stock, for the more risk averse.
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OUR LANDSCAPE PHOTO WEBSITE (and free 8 x 10" offer for anyone)
The winner and runner-up get original signed, photo art from our gallery at naturescapes-gallery.com
I've won many photo awards. Please stop by if you love nature, hiking, and the outdoors, especially if you need a little mental break. Donations from a percentage of sales are made to the World Wildlife Fund (http://www.wwf.org) BTW- SI members receive a 20% discount, except during major sales.
MOST POPULAR PRINTS
Message 17243939
FINANCIAL SITES WORTH CHECKING OUT (FWIW)
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Happy Trading!
Disclaimer ---- this thread is intended solely for discussion and sharing of ideas that hopefully will help us all to become more successful investors and traders. No one is thought to be giving insider information or to be licensed professional. The information presented by me, while believed to be accurate, is not guaranteed. No trade suggestions or strategies are ever guaranteed to be successful. It is strongly advised that everyone do their own verification and due diligence before making any investment decisions or employing any investment techniques mentioned here. The best philosophy is to trust no one on any message board. If you do so, it is at your own risk. Also, on 4/9/02 I entered into a verbal agreement to receive some one year restricted stock for some 30-day exposure help on a penny stock HQNT, which I have followed for years. This means I cannot sell the stock for at least one year, which hopefully will prove to everyone that this is a long term committment to its potential.
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