October 2007 Archives

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Say (saying) Goodbye to Covad :(

It's a sad day when your favorite trading stock disappears! Below is the email alert i've just received here sunday night. Below that is a cut and paste of my past trading activity on this stock in my real-life portfolio. I had just bought 100 shares of 'DVW' i.e. Covad Communications for my sloport a few weeks ago to test whether it could infact be bought and with what sort of commissions under marketocracy guidelines. This is primarily the stock i had 'cut my teeth on' in 2005 when i first started 'trading' (along with the likes of LU, GSS, etc.)
Overall it was very good to me. I had first noticed the name 'Covad' in the autumn of 2005 when i had received an email correspondance from someone with an ".....@covad.net" address, and then amazingly within a week of that i had somehow luckily noticed the name buried deep within an article(s) about wifi/or/wimax experiments in the san francisco and post-katrina louisiana areas... When a company you've never heard of suddenly starts popping up in really vague references within the realm of your perceptions it makes sense to take a further look. Of course some of you might remember this stock from the bubble days, as it seemed from its charts it was sort of a 'high-flyer' back then. The fundamentals were very poor and it never recovered, but that didn't prevent it from being a good trading stock for awhile. I just bought it about 3 weeks ago for my sloport around 60 something cents, and its selling-out for a buck.02, a roughtly 60% missed opportunity. I couldn't have predicted this, honestly, but based on the charts i might have been inclined to move more heavily into it for slo and/or real, as it was leveling back down to where it had begun its rise in the autumn of '05, with similar revenues albeit more debt. Well good-bye Covad, we'll miss you, (some of us), and we wish you well. So long, farewell, adieu, adieu, adieu....

Covad Communications Group Inc. To Be Acquired By Platinum Equity For $1.02 Per Share

Covad Communications has added a news release to its Investor Relationswebsite.Title: Covad Communications Group Inc. To Be Acquired By Platinum Equity For$1.02 Per Share Date: 10/28/2007 9:51:00 PM For a complete listing of our News Releases, visit: http://phoenix.corporate-ir.net/phoenix.zhtml?c=67488&p=IROL-news

Symbol Quantity Price ActionNameUS TradeDate Amount
DVW 400 0.79 Buy 11/9/2005 -324.58
DVW -400 1.031 Sell 1/6/2006 405.38
DVW 1000 1.22 Buy 2/9/2006 -1227
DVW 400 1.2299 Buy 2/15/2006 -498.96
DVW 800 1.2399 Buy 2/21/2006 -998.92
DVW 200 1.5699 Buy 3/7/2006 -320.98
DVW -1000 1.8801 Sell 3/20/2006 1873.04
DVW -1400 1.95 Sell 3/20/2006 2722.91
DVW -500 2.16 Sell 3/21/2006 1079.96
DVW -2500 2.16 Sell 3/21/2006 5392.83
DVW 3000 2.0699 Buy 3/21/2006 -6216.7
DVW 1000 2.08 Buy 3/21/2006 -2087
DVW -400 2.12 Sell 3/22/2006 840.97
DVW 2500 2.09 Buy 3/27/2006 -5232
DVW 2500 2.26 Buy 4/6/2006 -5657
DVW -2500 2.3 Sell 4/6/2006 5749.82
DVW 600 2.26 Buy 4/6/2006 -1356
DVW -600 2.31 Sell 4/6/2006 1378.95
DVW -800 2.54 Sell 4/17/2006 2031.93
DVW -500 2.54 Sell 4/17/2006 1269.96
DVW -1500 2.54 Sell 4/17/2006 3809.88
DVW -200 2.54 Sell 4/17/2006 500.98
DVW 3300 2.33 Buy 4/20/2006 -7696
DVW -3400 2.4 Sell 4/20/2006 8152.74
DVW 600 2.38 Buy 5/1/2006 -1435
DVW 1600 2.4 Buy 5/1/2006 -3847
DVW 1200 2.37 Buy 5/1/2006 -2851
DVW -1000 1.89 Sell 5/12/2006 1882.94
DVW 400 2.16 Buy 5/26/2006 -871
DVW 300 2.16 Buy 5/26/2006 -648
DVW -600 2.16 Sell 5/26/2006 1295.96
DVW -1600 2.16 Sell 5/26/2006 3448.89
DVW 1500 2.16 Buy 5/26/2006 -3240
DVW -100 2.23 Sell 6/2/2006 215.99
DVW -1100 2 Sell 6/16/2006 2199.93
DVW -600 2 Sell 6/16/2006 1199.96
DVW -600 2 Sell 6/16/2006 1192.96
Net 2138.84

Comments: View Comments |  Monday October 29, 2007


market went up this week a coulple points; my port barely moved.

my port is barely up overall by roughly a half-percentage point.

marketocracy funds update this weekend indicates i am 83.3% compliant since inception and for the 'most recent quarter'.

after doing some calculations and going over my fund's info at marketocracy it seems the indicated percent comes from the fraction 75/90, which would mean they are using the actual inception date of July29th all the way till today, Oct. 27. I.E. 2 days in july + 31 for august + 30 for september + 27 to-date for october = 90. I skipped the first 15 days of the open, the last two days of july (unwittingly) and the first 13 days of august during the downturn (the trades registered on the 13th but i guess they're not counting that). i lost about 5% at the tail-end of the downturn but had jumped in a bit prematurely over overall compliance concerns. so there you have the figures, 75/90, for 83.3%. It took too much research to figure this out. Rules require one to be at least 50% compliant for the 'most recent quarter'. It still isn't obvious to what this refers. marketocracy rankings currently indicate august 31st as the end of the 'most recent quarter'. elsewhere in marketocracy-prose examples indicate normal calendar quarters as 'quarters'. If 'most recent quarter' stats were computed incorporating july for 'Q3' i'd be roughly 52% compliant (july/aug/sep =92days - (31+13 days) = 48/92= 52%); if 'most recent quarter' stats were computed using august 31st as the end date of the most recent quarter then i'd obvioulsy be even less compliant. I can't tell if they're going to compute 'most recent quarter' compliance based on a rolling-daily 90 day time-period, since apparently they're just using the july29th inception date as an arbitrary substitution date for 'most recent quarter' - so far. Anyhow, i.e. hence, and/or so, we are currently 90 days into this competition, from 'july29th' till today oct.27. i have been compliant for 75 days, therefore accruing 29 noncompliant days over the 46day/>50% threshold. As of next monday there will be approximately 64 days left (until NYE (?)). Ummmmm, i suppose maybe i should have used up some more of my noncompliant days by now, just occured to me that maybe we lose them as the quarters roll forward. Perhaps i'll try staying closer to the line in the next open. Too difficult to calculate remaing possible ncd's while factoring in both saved days and the future diminishing time of the contest, while also trying to gauge how the 'mrq' will be programmed.

Anyhows, none of this matters if i can't get up in the moring. Have been averaging an average bedtime of 4-5am, getting up noonish and running off late to class, and only checking markets in the late afternoon, sometimes getting there before close but always reluctant to make rush decisions at close. What time of day do you all prefer to make your trades? My best ideas continually pass me by by not being an early bird. Haven't traded for weeks due to my personal habits. Missing all sorts of opportunities. Could of overloaded and made up 10/15/20% on the leaders in just a day or two everynow and then. Liked the financials/mortgage originators after the mer report, lost 10/20/30% opportunities on the mer's, cfc's, imb's, ko's of this world the last few days and weeks. Repeated opportunities to take the lead, going by the wayside due to my need to sleep when i feel like it. Recognize the need for discipline in both life and investing, however habits can be hard to break. It's occurred to me to bottom fish these financials repeatedly for the last month or so, for 2 reasons, despite their poor prognoses out different time-periods... One, despite some of their rather large writedowns, they stll report positve earnings #s. It's just amazing how many billions in profits the largest of the large are rolling in, despite the writedowns, and certainly then their stocks can look oversold. Second, it makes perfect sense to me that they'd want to take the writedowns now, for tax reasons, as we're nearing the end of the year. If they play it right they might even save some of their available write-downs for next year too (first quarter, and/or second quarter?). Moreover, at some point they'll have to 'write-up' the losses that they 'write-down' for assets they carry. My guess is they'll try to wait till 2009 to do this, but i don't know, haven't thought about it, it's just a guess, based on their wanting to 'limit profits' for both 2007 and for 2008. I'm usuallly way ahead of the game in my analysis of stuff, but way behind when it comes to sleep :( :) I come home and watch the mer's and cfc's pop 20/30% from their daily/and/or intraday lows and think how i'd planned on gettin that in the morning...
Write-downs of credit-crunch assests that they can't mark to market, obviously they'd just prefer to hold on to these, take the 'write-down's' that jive with the public perception now, allowing tax breaks for the fiscal year(s) (how could the IRS protest?) and let their accountants and tax experts figure everything out along the way.
Neighbor just came home next door about 10 minutes ago, distracted (me), lost my 'momemtum', guess i'll leave it at that, for now...
p.s. the hawks beat mich.state in 2x overtime this afternoon, they need to win-out to make a bowl-game. drank 3 cups of everclear punch at a costume-party last night ( i was trying to be a clown, but people kept asking if i was 'rainbrow-bright' (who?!) because of my stockings....
happy halloween y'all. don't forget to x-ray your kid's candy :~\

Comments: View Comments |  Saturday October 27, 2007

my comments on market-dispatch's friday week-end - week forward review

Link to msnmoney'smarketweekendwrapupandweekforward(p)review:

Market Dispatches - MSN Money

sorry no trades, no stock ideas or tips, just putting something down on screen to justify time spent reviewing marketnews.

Google's market cap jumped to about 200billion on friday. Has anyone reading this ever spent a cent on google yet? Google is my primary search engine, i use it all the time to find information, but i've never once responded to an add, or bought something because of using google. When one googles something they get a list of often hundreds of thousands of results, with the first page of 1 to 10 results showing. I surf to the article that looks most relevant for me, and i dont recall ever having spent a penny on any of the adds on the side of the page, or on any click-through sites. Buying Wendys has made me start to think about marketcaps. I think its odd that there's an intangible company out there called google worth 200 billion that i've never spent a cent on, and a company like wendy's worth only 3 billion but which has fed me for years.
Of course google's ad revenue continually jumps higher, and its only recently (like today) that i've begun to accept the virtue/power of add-presence/name-recognition. When i was a little kid i used to wonder why mcdonalds advertized on tv, since i already ate there anyways. i love these sort of innocent/nacent questions/curiousities, and stick to them forever as a sort-of guiding light. But honestly, i've never jumped up and ran out to anywhere because of a commercial. If you see a mcd by the side of the road..... well back to google; i dont see myself ever taking a position in it. it has troughed out for quite awhile relative to itself, and so i suppose it's time for it to start making its way up to 700, but it's for the large-institutional investors, not for me. I would, however, on the contrary, no doubt love to play with a 200bil market-cap stock if I were incharge, wouldnt u? just think of the possibilities: googlephone, googleOS, googlesoft, googlefax, googlebroker, googlerealtor, googlegps, googletravel, googlemail (nextphase snailmail virtual transport/fax/dump), googlebay, googletv, googlepedia, googlephoto, googlechannels, gagglegoogle/ooglegoogle (social networking), googleflight, googlevote, googlegov, googlecreditcard, googlepay, googlecomp, googleauto?(to compete with the I-car?...), googlemusic, etc. ... Barring regulatory prohibition, anythings possible for a 200bil virtua company right? Lets compare google to wal-mart for a second. Wmt also has a 200bilion market cap. Now that makes sense, doesn't it, instinctively? In a way, it seems a shame that wal-mart stock has flatlined ever since 2000. Anyone not buying wmt last month just missed a great opportunity to buy it at its 7-yr-flatline-trending-low of 42 climbing right back to 47. I think that wmt management strategy the last coulpa years has been to start growing up instead of out, converting to supercenters rather than mass-expansion, hoping to improve comps. They're still eeking out sales gains, even in this recessionary-wary environment. Perhaps its not fair that they've been blocked by regulators from moving into banking, and i certainly would or could trust and support them on such a move (in house credit processing for sure!). Now google at the same market cap can expand into any industry it sees fit with its play money, but wmt is confined to its original business, despite the competive and ever-changing world we live in. I like walmart, and have given them thousands in revenue, despite the many naysayers among my peers, especially in a liberal college town, whom boycott wmt on principle. (as an aside, i've been boycotting target/tgt since 2003, when i had applied to help them with their seasonal rush in a measley shipping/receiving job, and had been put through 3 interviews and a piss test, and offered the job, only to have it rescinded due to a credit report, as i had never used credit at that point based on my fundamental christian upbringing. and i will continue to boycott them indefinately, giving wmt all my big-box spending, and that of all my family and friends whom i turn from tgt. rule #1: customer relations) As another aside, is it fair that wmt cant do in-house procesing of credit, like tgt can? is it fair that they're denied further entry into the banking/credit arena, when S & L's get bailed out in the 90's, when B&B's (banks and brokerages) today get bailed out with a rate-cut, when both smallcap and largecap transaction/credit/data/ companies proliferate and/or merge and/or go public, and in an era when the big boys mastercard/visa/discover/etc take advantage of going public too?
wmt should at least be able to have a say in their and their customers own transaction costs, right? Where are the lobbyists worth their salt? Well it seems wmt has decided to undercut again, in reports this week, to get a head start on the holidays, a strategy which has worked well in previous years. But as i've alluded to in earlier posts on small-margin discretionaries, i woulndt be suprised or at least would think that small-margin discretionaries, such as a wmt or wen, would try to incrementally increase there prices to counter decreased unit-volume expectations. I would find it very unusual if retailers across the spectrum didnt/havent noticed that somehow with bush's 'keep-buying-to-do-your-civic-duty-and-ignore-the-war" mantra and the concurrent massive rise in oil and pump prices that consumers are willing to pay anything for anything, or at least have not changed there driving habits, engendering the thought of 'why not me too'. Honestly, if you're a seller of any product and you look over and see the energycomplex gouging consumers who don't respond, why wouldnt you raise your prices too? If we begin to see upticks in inflation over the next year or two, it will have much more to do with the 'inflationary well-hell me-too-then' mindset and the bush antiwarawareness strategy of go-about your-business and buy, rather than half or quarter point fed drops.
My advice to wmt, raise prices on anything that isnt already priced psychologically at "?.97c" and get some better lobbyists.

Moving along, it seems that owning anything that carl icahn owns might be a good idea. the marketdispatch article mentions not one but two separate companies in which he has stakes which have gone up friday due to his activist pressure to sell: biogen idec, biib up 18%, and later in the same article bea, BEA Systems, still jumping after Oracle's offer. Even GM was mentioned in the article moving up friday 6%, without mentioning Icahn but to which if memory serves Icahn was mentioned a lot with regards to GM back when GM was under 20 a year or two ago. A quick google search of "icahn holdings" leads one to this page .

The market dispatch wrapup also highlight some key earnings reports this week and some economic data to be released. Based on this limited info i will attempt to make a daily prognostication for the upcoming week, somthing i havent done for a long time but which i used to be able to do like clockwork back in high school. Monday we should open up on follow through buying from friday and somewhat of the general year-long merger-hope psychology. Citigroups earnings should be discounted, and Mattel might take writeoffs for their struggles, i.e. 2 irrelevant earnings reports. the market will come down from it's monday high and trend down right through into tuesday, which should open down but finish higher on the day. Decent earnings from intc, ibm, jnj and yhoo will relieve people, and the financials wfc and tma, however they'll report, should be somewhat discounted already. Buying should increase into wednesday, with JPM and KO at worst balancing/cancelling out their earnings reports (KO up - pep report and falling dollar) and relatively tame and/or discounted tuesday/wednesday industrial production and cpi data, and wednesday housing starts data bad of course but perhaps in more in line with recent applications. Thursday and friday should see a repeat of this week, down thursday on underperforming expectations on goog and bac news, and friday up on postive earnings from industrials like mmm, cat, hon, and slb.

The marketdispatch article also mentions that MCD reported same store september sales rose ~6 percent. Outstanding and mcydees continues to impress. Don't know how they do it. Hopefully i'll get a followthrough pull on wen. Looking at wendy's options today, Wen at 34.35. 1week 35 calls at ~30cents. Nov30 calls at ~4.6 (only .3timevalue). Dec30calls at ~5. Mar30calls ~5.6 and Mar25calls at ~9.9 (time value ~.55), and finally Jan09-20 &25 calls at 14.5/10.1 with timevalue decays of only .75/.15. Stay away from out of the money calls as you dont know how low a price an lbo could lock in. The later months' ops could help protect against an autumn market dip, if any.

GE reported strong earnings and revenue, which bodes well for PHG in my sloport, a longterm international hold for anyone.

In other news, VTSS, a joke stock one dollar stock added to my sloport last week in a very tiny test fraction, has bumped up on thursday and friday on news they are entering settlement talks to end all of their litigation over mismanagement and backdating options scanals. The stock went from about ~90 cents to a buck-ten, and would be a neat one to play with for some short term action. The fundamenls are poor, of course, but i have traded this one personally in the past with some success, and perhaps it will get a third-day bounce on the news, and perhaps even some mellow sustained higher trough action as weeks go by, and maybe even catch an overall tech bid before next spring if they could ever report in the black. It's not like anyone can short a one dollar stock.

Think ill look into berjaya.com for the ticker symbol on berjaya, to see the price and fundamentals of berjaya, a malaysion exchange co which recently entered into an agreement to run some wendy's chains in malaysia. (do muslims eat beef :?). malaysian conglomerate with several business branches...

In personal news i finally updated to Microsoft Internet Explorer 7, after being forced to adapt to Windows Live Hotmail last month, and the whole experience just sucks, and makes me want to go out and buy some redhat, RHAT, the underdog linux co. Like the linux story for years and have looked at rhat on occasion the last coulpa years but for whatever reasons didnt see the price-entry points i woulda liked. Think i heard they recently reported some good numbers. WindowsLive makes my mouse-scroll action all jumpy and limits how many messages i can display in my inbox and removes the quicklinks on the page to msn.com, etc., etc. Now with IE7 i can no longer right-click on the backward and forward arrows to return to previous pages a heck of a lot quicker than just doing Alt-arrows repeatedly. To make matters worse upgrading to IE7 alphabetized all my hundreds of links and favorites and there's no way return the organization to 'by date created', the way i have it organized chronilogically in my mind and life. Have wasted many many hours tinkering with these probs and searching for help and of course msft is such a behemoth its unrealistic to expect any help or changes. I'm just about the only person i know left still using either hotmail or IE for a browser.

Comments: View Comments |  Saturday October 13, 2007  |  Stocks: , , , , , , , , , , , ,

wendy's holders want better news, and soon

Columbus Dispatch: Carlisle looking at Wendy's purchase: bizjournals.com Business News: WEN - MSN Money

The article to this link states a wendy's franchisee already operating about 100 restaurants, Carlyle Corp, not to be confused with the Carlyle group, is also interested in joining potential other suitors for the company. This isn't the strongest news one could hope for as a holder. WEN has a 3bil market cap. Apparently Triarc Cos. has already offered 3.6bil. Carlyle thinks the offers out there are too rich at today's prices and hopes wendy's keeps the business in house to someone who already understands the core values of the company. I'm waiting for better news.

A market cap of 3bil means wendys is only valued at about 10bucks for every person in the country. They cant equal 10bucks a head in retained earnings to up their value/market-cap in the future?
Time to raise the dollar menu. Time to make breakfast. Time to build out more stores. Time for a larger buyers' group with more leverage to infuse some capital or changes, not a measely 100store franchisee. Of course you don't want someone to come in and strip it either. Don't know why they're even thinking about putting themselves up on the block. D/E ratio is .79. Anyhow, look at the charts, this stock ain't going down. If they decide not to sell, so what? The stock is trending up by itself anyways on its own merits. A value play, a small growth play, and a buyout play all the same. Low risk, low-gain, but possibly more gain. Nice scenario. Would be nice if they put something together this month. I hear people beating the panic drum on future bank earnings announcements, as if we didnt know and or should care. Tidal forces picking up by the next waxing crescent moon. Hope there's no riptides.

Comments: View Comments |  Thursday October 4, 2007

Title - ucallit

Building Blocks | InvestorPlaceBlogs.com : Archives : Buy what you know.

good entry charlotte. words of wisdom. kudos. stay the course. i recall looking over cvx a year or two ago and it looked really good, one of the best poised of the major integrated oils. your profile says you like to invest in dividends. hey does anyone know any good websites with dividend screens/databases where one can easily find which companies are going xdiv today, tomorrow, this week etc.?? MSN has a decent 'earnings caledndar' but no 'dividend calendar'. i want to try buying and selling everyday just for the dividends. Someone please let me know if you know of a site like this.

btw this entry is being done via a 'quick-post' entry i'd set up through movable type. it's kinda nice for commenting on an article. you just right-click on whatever article you have onscreen, choose 'quickpost', then type your entry in the pop-up. (typed into the entry body field, not the extended body field)

p.s. charlotte i vate you a '2', though prob more like a 1 and a half :/ :)

Enable those comments people.

Tried a penny stock today, and lo and behold the 5%max commish takes precedence. SLO needs to ban this.

Also tested the OTCBB with Vtss today and it bought - thought OTC trades werent supposed to be enabled. Maybe i remember wrong, or maybe its just the pink-sheets are'nt enabled, i don't remember and i don't feel like digging for that information right now.

Russ previously informed daytrading is allowed, but difficult. (and expensive - my inclusion).

Why do you invest? Good question indeed, Eileen. Makes me think. I guess personally i dont worry too much about preservation, since i don't have dependants. And i'm not looking to attract a mate based upon 'net worth', heaven forbid. Ideally i'd like to earn 2, 3, 4, 5, 6, 7, 8, 9 hundred etc. percent returns every year. i want to quickly compound thousands into millions, so that i can facillitate the many business ideas i have, without resorting to loans, or VC, or partnerships or anything like that. I've more or less got complete business models in my head for everything from cellular, to restaurant, to optical, to sports, to auto-industry, etc... . Some of what you might call 'disruptive' innovation/competition. I guess i am more prone to 'gambling' at times. Something i am well aware of. However i am always attached to and somewhat fighting my conservative upbringing/principles in order to 'make it happen'. As i've posted earlier, i think er hope that eventually i'll be able to take the plunge on some successful Leaps. There must be some sort of expected return for, say e.g., a 1 year call-leap on a/an average say 30% underlying move in a year on say an average 20PE stock. Like something in the 'multiples'. I think, er hope, that i can do that. My experiece has shown me that 'value' and/or bottom picking-investing can accomplish this. The SLO lab has/is confirming for me that on a short(er) term, 5-6month term, that momentum 'investing' has more success, as it seems that the vast majority of all slo ports are going up simply because the market is going up, and those going up the most are going up with the most momentum. 'timing' and 'worth' are very esoteric things, and i guess quantum economics disallows any precise certainty of a stocks value. oy vey, where am i going with this, please ignore me... i digress...

uhh, well, this SLO is teasing and tempting me to become a momemtum player, seeing the sucess everyone else is having. I too, have a sort of 'split personality' a.k.a toroandbruin. In real life port i've had a conundrum. As i've said in my marketocracy bio, i havent really shown much in the way of gains in my meager portfolio since i started more actively investing a coupla years ago. However, a pattern has developed. i typically work these 3-4 week temp jobs, then i get a few weeks off, and so it goes throughout the year. Whenver i'm not working, i 'trade' and bring my portfolio up. Conversely, whenever i work, my portfolio goes down, either because i parked dough into value stocks that may trend down for a little while, or because i put something into a growth/momentum stock which falls-back/pulls-back, etc., and most commonly because i live a hectic life and would accidently stay in trading postions that required careful watch. So in essence work has become very difficult for me, because i always feel like i'm sitting there all day for scratch, and losing even more than i'm making during the day. It sucks to work all day for a hundred bucks and come home to find your portfolio has gone down 300, knowing you could have stayed home and made 300 instead, or a net diffence of 600, plus the time 'wasted' at work, for the man. I find it hard not to rationalize that the market goes up or down on average one or two percent a day, or that certain stocks that one follows goes up or down 1/2/3 percent a day. And that with just a coupla quick trades one can beat the 'ideal' 5-10% annual gain that exceeds most of humanities/nature's growth rates. Anyhow, i did this SLO to try to better understand 'midterm' investing, as i call it, so that i can better align my short-term trading and long-term investor tendencies. However, i'm learning more from all the players than i am from myself, as my port has been predominantly random. So thank you all for your interesting blogs.

Two myths i'd like to point out: myth #1 - investing with emotion is bad. It has often been precisely when i have felt a sense of emotion, such as confidence, resentment, desire or someting like that, more generally what i would call 'being pissed off', that i notice i have made gains. Sometimes when my port feels stagnant i get 'pissed off' and make wholesale changes, ignoring transaction costs, and for the better. sometimes when i am tempted to sell and i Know or get 'pissed off' that the rest of the market doesnt recognize something too then i'll hold out a little longer and eventually get my gain. Yes there have been several times when i've bought 'quickly', such as for an earnings announcement, and gotten burned 10%, but that's not so much due to 'emotion' as to simple gambling on announcements, a practice i now more or less eschew.

myth #2 well i guess this really isnt a myth per se. but what i'm trying to say is that so much about what this slo is, and why im learing from it is, is that just like in the experts-msn-slo lab, choosing an 'investment style' and then 'sticking to it' is _________/?????/ hard?/not always the right decision? Sorry, i just lost how to word what it was i was trying to say. In other words, the experts pick a style and stick to it, so that we the readers can learn along with them; slo lab players here too for the most part have stuck with their investment philosphies as well, and we all learn from it. However, i personally am beginning to notice a parallel between my slo port and my real life port. In real life, i often get enthused by so many good stocks, good stories, good valuations, so that my port balloons from one or two or three to up to 10 postions, and for 'good' (not) reasons too - because i see sucess coming elsewhere, because i want to be a part of that story, because i want to contribute and support those companies, because overall, i and we all sense the optimism in general that comes with being a part of our worlds corporate life and the forces that help to change our world. I of course pick good stocks when i do this, and truth is, most stocks will go up over time, this is 'life' after all, not the dark ages, or an enduring black plague encompanying us, however when my port does balloon my gains become stagnant, as i've simply stretched myself too thin, increased my transaction costs, and allowed my stocks to cancel themselves out on a daily basis. I havent been to over 3 or 4 or 5 positions in real life for like over a year and i dont intend to again, at least not unless i can eventually work up to a self-supporting (livable/income-producing) size. My slo-port here is sill predominantely a random selection (not quite random) of initial stocks, and were it real life i would have certainly by now been tempted to turn the whole thing over. Sometimes in the past i've looked at my real port of 10 or so contrasting do-nothing postions and then spur of the moment sold them all out, and started out fresh with 1 or 2 particular picks. It's ok to change things up, at least for non-dependant/non-depended/non-retired/etc.etc. profiles.

Hey does anyone know what the average 'turnover rate' is for an average mutual fund? Sorry for the long post, guess i need to get a life... :) Peace.

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Comments: View Comments |  Monday October 1, 2007

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