TSE NORTEL
Q: Is there any stock out there that you like? It seems like whenever someone touts a particular stock, you always seemed bearish on it. I remembered you posted that you like SWC but that's about it.
A:
As it says on my web site: "Main features of [my] trading style
currently include 3-5 year position trading horizon, integrated
technical and fundamental tools, and working towards 'fully PaidFor'
positions in which all cash has been recovered, taxes have been paid,
and resulting actual profits are allowed to run to their maximum
extent.
to any one trade so that risks are not unduly concentrated on a single
company or industry."
It was days ago that I bought the two tax lots of that position (a
way of looking at things which does NOT exactly conform to how I went
about buying the shares, nor with the IRS view of how many tax lots are
involved, but does conform to a policy level thingy of mine on how much
money is involved in each of my buy decisions and orders). Nothing
has surfaced to refute the underlying analysis in the meantime. Heck, I
haven't even got the last of the stock certificates yet (messy situation
involving maximums on number of shares which may be buyable per trade
ticket which erupts when penny stocks are being bought) from my brokers,
let alone properly tucked it away in my vault for the typical 3-5
YEARS that I hold things. The stock hasn't even gotten back up over
net tangible equity, the company itself announced a stock buyback AT
LESS THAN NET TANGIBLE EQUITY (the rare and only kind that I approve
of) which improves the net tangible equity for me and other continuing
holders, and I have NEVER in my life voluntarily sold any share of
any stock for less than net tangible equity. Besides which, I think
the company is worth considerably more than its current net tangible
equity IN DUE COURSE and the fullness of time. I just wasn't willing
to buy any until it got on down to my level of chintziness and
cheapness (or at least what I think, and believe on the basis of my
analysis, is such a level of chintziness and cheapness).
So the bottom line is: Yup, per my normal in virtually all cases other
than cubies and stocks about which I find some fatal flaw within days of
buying them, I still own the shares I bought. Probably shall for some
length of time approximating my usual 3-5 year trading horizon (that is
not a commitment, only a description of a practice which is almost
universally true of my trading, and all those who joined my Trackers
email list will know about it same day, probably within minutes, when I
do get around to selling any such shares). I may even buy a third tax
lot, in the meantime, if some more folks wanna dump badly enough to
locate my next buying price. A third bid, in any event, is in my
order deck ready to float to the top of the deck if the price goes
sufficiently lower. (By definition of my own talking rules, I wouldn't
be talking about the stock at all if I had any orders in my deck on
either side of the market which were anywhere close to current prices.)
Quite the contrary. I'm actually a perpetual optimist, trading almost
exclusively from the LoNG side. I just temper the optimism which I
must have in order to buy stocks at all, especially under the current
grim environmental conditions, with tons of analysis and accentuation
of any negatives that I find while doing my regular analyses. You find
somebody who growls most of the time, and it's bound to be a bull who
has been disappointed often enough to be wary of his own bullishness.
It's the BEARS looking to dump stock on an unwary public who are
always talking things up to absurd high levels (so that they can dump).