Well I Broke A New Record
Q: Do you invest in any of these medical stocks? When I ran the numbers this weekend, I thought they looked like a strong company with good future potential.
A:
Since I got into this daytrading not too long ago, I
try not to hold overnight. This Brings up an interesting
question on the stop-limits. Are these only good
during regular trading hours? I assume so or you
wouldn't have taken the beating.
Without having looked into that specific stock, I would bet that the
case was detailed
their annual report and/or Form 10-K. But if you think what happened
to GDT was something, keep in mind that it has happened to many other
companies, such as Texaco when that flakey Texas court decreed that
the entire assets of Texaco suddenly belonged to one of Bush the Elder's
business partners on the basis of the crony of the then President having
gotten some kid drunk and then photographed "shaking hands" which was
construed as a binding deal to sell the kid's assets for an absurdly
low price which Texaco willingly topped, only to be subjected to the
interpretation of cronies of the President that any such rigged photo
has more evidentiary value than the obvious unconscionableness of the
deal sought to be imposed by Bush the Elder's longtime business crony.
Narrowing your focus to too few stocks always makes you subject to
disastrous consequences when one of those "surprises" occurs. Even if
you had read the "Commitments and Contingencies" it might not have sunk
in what the consequences would be if GDT were to be stopped by such as
the injunction which in fact issued.
Maybe. There is serious risk involved not only from "the other shoe
which hasn't dropped yet" but also from people who are just plain slow
to make their decisions to dump the stock based on the original news.
It may all get done in a fair and orderly and expeditious manner, but
it still involves trading stocks and that is *always* risky. You may
notice, for example, that the original flooring we were talking about
has since been significantly unwound in the following day's trading.
Also note that in the detailed aspects that I posted for you under a
different heading, there are some serious negatives about the company,
entirely independent of what was in the news.
Along with understanding the only certainty "stocks will continue to
fluctuate" it is important to exercise the "three Ps of investing":
patience, patience, and more patience. Patience getting into positions
at prices which appear to have a decent profit margin expectable,
patience holding through all the intervening difficulties which the
company experiences, and patience waiting for the market to WANT one's
shares at a suitable disposition price.