Comments on: What are you buying?

By: Dean Morel

Dean Morel — Sat, 22 May 2010 09:01:36 +0000

Nice to hear form you Zz and good to hear to took some money off the table near the recent top. Any biotechs look appealing to you at the moment? I note Vertex has dropped down into my buy zone, boring I know, but I think it is a good return for the risk.

By: HelicalZz

HelicalZz — Fri, 21 May 2010 13:35:22 +0000

There is a contemplation to simply buy back stuff I sold a month or two back. But … not in a hurry.

By: Sean

Sean — Fri, 21 May 2010 09:40:32 +0000

Also Dean I beg to differ about the potential for NUF to bounce.

Sumito purchase 20% company ? March 2010 $14/share
Institutional placement ?7.40 ?April 2010
1:5 Rights issue ?5.75
Some director buying recently at 7ish

Last price: 5.87, low today 5.73.

I think it has a better chance of bouncing than ELD or PSH at these prices. But of course I could be dead wrong so no one should base their investing decisions on anything I say.

By: Sean

Sean — Fri, 21 May 2010 08:40:56 +0000

Hi Dean,

Something I learnt recently is that outperforming the index at a loss still sucks. So when I sold STW at 4800 and left my individual stock holdings, that was a mistake. TLS went down less than the index but I still made a loss on it and that sucks.

For me I’m an index investor and am value cost averaging into the index. I bought 1 STW at 42 (but then I sold it as it bounced to 44.5 the next day), today I bought 2 STW at 40 and I’ll buy 3 STW at 38. That’s actually where I get outperformace. And really it’s all I have time for. Everyone has different investing skills or temperament and for someone else this strategy could result in a major loss for them or underperformance.

There’s sufficient volatility at the moment that you could make a decent return by swing trading the index on a weekly basis. So why invest in individual stocks which could potentially go to zero when there is enough volatility in the index ?

This is a fantastic environment for trading due to the volatility. I’m trying to stop myself from trading but sometimes it’s just too tempting. I’m trying to keep my eye on the prize which is what I think the range for the index will be for the next 12 months.

By: Peter

Peter — Fri, 21 May 2010 03:18:17 +0000

I have the beginning of feelings not dissimilar to Buffett feeling like on oversexed teenager in a harem. I agree the main issue is to get maximum bang for your buck. Do we get greedy or extremely greedy? There are now fair prices on offer for good companies. Do we wait for goods prices for good companies? That is the market timing devil in me speaking.

For what its worth, and readers do your own research, this is just my opinion…legalese disclaimer blah blah…I am now watching COH (not fair price yet), CSL (fair price), BTA (good price), TLS (getting close to fair price), CPU (not fair price yet), RMD (analysis incomplete) and SRX (analysis incomplete).

As usual, rock solid small caps such as ASW and IMF will not budge, so no bargains there yet.