posted
These are some general questions and I am hoping that Glassman, Purl, Blue, etc. would reply to it. No offense to others(you can reply as well) but I have been reading posts here for a almost on/off a year now and tend to respect their analysis/views/opinions.
1) When I read people say they are accumulating more or buying at dip, does that mean they are putting more money into their portfilio to do that or is it by closing some of their other positions.
2) When people are holding some shares for about a year or two such as CLSI without making any profit, why lock that money and not use it in some other moving stocks?
3) What are some general points on how to do a DD. I know how to read technical charts and have been active on/off in stock market, not much with pennies though. Have made some money on ALMI and IESV, still holding IESV and NMKT. But I want to be able to do hard work myself in doing DD and then sharing my input rather than just reading others' hard work and not giving any input. So if there are any books that you would recommend or anything, I would certainly appreciate that.
thanks
-------------------- Tas Posts: 64 | Registered: Jan 2004
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1. not sure if it really matters much how the $ comes about - main thing is that a person is adding. i try to keep 20% in cash so i can add if opportunites arise
2. no question CLSI and some other stocks are frustrating. however, you never know when something will finally move. if you own IESV, you've seen this. i bought it at .07, watched it die a slow death to .038, and then suddenly it shot up and i sold it at .155. i tend to be too stubborn, some stocks i refuse to sell at a loss as long as i still like them, even thoug common sense and wisdom would say to sell a loser
3. finance.yahoo.c0m and edgar online are good places to start researching companies. so are screeners - yahoo has a good one. message boards like this are good places to look for stock ideas, and then go research more on one's own. as for books, "one up on wall st" by peter lynch is still my favorite, a classic (if outdated in it's specifics - ie, no one goes to the library to search morningstar stuff anymore, it's all online).
posted
2)Because people feel that the stock will still go up big. OTC stocks usually take seveal years from what I been reading.
3)Never pick a stock buy looking at messages posted on a BB. Yeah some are honest, but most people that BASH a stock do it for a reason. Its usually not that the company is terrible. Most are short sellers or people tired of waiting for price to go up. The PUMPERS are just as much liars also most of the time.
Look at charts online. Volume increases, %gainers, most transactions, stock reviews from well known sites. This helps you narrow it down. The go on yahoo and do the research on what they sell and also on the SEC site for filings.
If you can't figure out what they sell , or you think you wouldn't buy what they sell, pass it up then. If nobody is selling what they are selling , its also a good thing. One of a kind stocks like BLYC have a great chance. WGFL also sells an origional idea with amature golf tournys. SIRI also with the satellite radio.
Check for reverse splits. If they do them each year or few times a year, don't buy them. Forward splits though are a good sign.
Goto website finally and check if info is updated regular. Usually you can get a feel for the company by the website they have also.
And remember take the BB post lightly. SIRI gets bashed 24/7 and I think it will replace FM radio one day. So don't go buy post that much.
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i would at least partially disagree with some of this, or at least take a slightly different slant.
BB's can be an excellent *starting point* to find *ideas* of good stocks. after you visit them awhile, you get a good sense of the "life-cycles" of some stocks, of what people to trust and who not to trust, and so forth. i would *never* buy a stock purely on someone's recommendation, not even the legendary Purl's. but - if i read 20 posts about stocks by people that i respect, then i might find 4 that interest me, and 1 i buy, based on my own further DD.
quote:Originally posted by <Hello>: 3)Never pick a stock buy looking at messages posted on a BB. Yeah some are honest, but most people that BASH a stock do it for a reason. Its usually not that the company is terrible. Most are short sellers or people tired of waiting for price to go up. The PUMPERS are just as much liars also most of the time.
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