Monday, October 01, 2007

 

4th Quarter starts off with a decapitation, now what?

If you are heavily short this market, you might want to work a little harder, in order to recoup your ridiculous market losses.

In my experience, the beginning of a quarter is very important, in order to set the tone. Without doubt, today's rally is just the tip of the iceberg, barring a really bad set of economic numbers.

With my money, I have done nothing. Sometimes the best strategy is to do nothing. Let your winners win and hope for your losers to wake up.

Now, don't get me wrong, I do not endorse holding losers indefinitely. However, if you have done some decent research and feel the stock can work, give it a shot. Buy more on declines.

Often times, beaten down stocks, with good fundamentals and high short interest, can turn into major winners, like RIMM, AAPL, EBAY or even MVIS.

All good companies go through periods of duress. The key, of course, is to identify a mistake in how the market is pricing a particular distressed stock.

As you know, "The Fly" has a list.

So, to wrap things up, just chill out. Grab a fucking glass of Scotch and drink yourself into an Irish stupor, instead of over managing your bullshit portfolios.

Comments:
Amen, I'll drink to that. 18 year Glenmorangie
 
Broker A - what's your thought on SPAR, as FRPT is running. 1) The Spartan Chassis division of SPAR sells into the same defense markets as FRPT, and 2) SPAR recently received a $52 mln subcontract order from FRPT to support the production of Cougar series advanced tactical wheeled vehicles. Amid talk of additional Cougar contracts, there's reasonable hope for more SPAR subcontracts. 3) Short position is 19% of the float and almost 8 days to cover the short position at the current trading volume. 4) Institutions are increasing their holdings in SPAR.

Methinks SPAR is going to $22 slowly, but surely.

Your thoughts?
 
Woodford.

Ma-ha-'an.
 
Hi, Fly. How do you think about MCHX now? Should I pick up some shares now? Thanks!

http://money.cnn.com/2007/09/27/technology/marchex.biz2/index.htm?source=yahoo_quote
 
NOK should have bought MVIS instead.
 
Jake G-

Brud showing signs of rife.

Any idea on Oct. 3 results?
 
Shed,

No idea, but I'm not very happy with the volume here, given the general market. Still positive, on balance, but weak.

I lightened up a bit last week, as I think I announced here.
 
Crude - thx 4 APAGF ... nice call
 
Have we all "banked enough coin" on MVIS yet? Did today put us over the top?

LOL.
 
Hey Fly,

Don't know if you're any good w. the photoshop, so maybe you give this to Danny to do (and maybe he could animate it!).

Can we take that Mr. Belvedere pic you had and do a Robespierre on it?
 
The Fly is God.
Is there a doubt?
 
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