So what do I do?
As I type this, I have the chemo injection in me. Bi-weekly my chemo session goes from Monday through Wednesday. Sleeping with the needle in you poses some chellenges. Basically, you do not get good sleep. Oh well, such is the life of a cancer fighter. Aren't you lucky?
Yesterday, I gave you the year-to-date performance figures as well as complete list of our holdings. Some of you are confused. Especially the newer readers to this blog. If I were them, I would be asking "So what do I do now?". Thus, to help the new members as well as reviewing sake for the old timers, let me give you an overall review of our work.
Most importantly, please go back and re-read two of my previous notes: #1. "Investing 101" dated 4/9/2006 and #2. "How to get Started" dated 4/16/2006. Even if you think you've read it before, please read them again (it takes less then 5 minutes) because it will allow us to be in same wave length - so to speak.
Currently Acetrader portfolio carries twelve (12) different stocks. We will hold between 10-15 stocks at anytime but no more. Please understand that by having 12 stocks in different industries eliminates over 90% of unsystematic risk in a portfolio. If you were to invest in 100 different stocks, it will eliminate 97% of same risk. So by buying 90 more stocks you only eliminate 7% more of the risk - does not make sense to most of us. So, we will concentrate our effort on 12 players. Now, allow me to divide those players into different catagories in order for you to better pick which ones to hire first for your team.
1. Marriage material - these are long term commitments, although I gave you target prices for these we will continue to hold until something fundamentally goes wrong. Ideally, we will never sell these but we probably will some day. Consider these to be your core holdings, they are: RICK / UTK / NTE (you can buy these anytime, including now).
Example: We bought UTK (4/21/06) at $14.35 and placed a target price for $24/share. On 8/4 UTK went over the target price of $24 already. However we did not issue a sell. I believe this will go much much higher in the future. Although I changed the target price to $28 yesterday, we probably won't sell it even if it gets there. At least I won't - you can do whatever.
2. Intermediate Opportunities - these we expect to hold for 12-18 months unless the target price is reached before then. Most likely we will sell them once our objective is met. As always, I let you know when I decide to "fire" them. With these players I believe I found some value that most wall street people missed. Too many people are emotional - I generally leave the emotion outside when money is involved. Stocks in this catagory are: EXPEZ / AUTO / BYTH / IGLD / XMSR
Example: We bought PRZ (5/25 & 6/6) at average cost of $1.29 and place a target for $2.5 but by 8/8 I smelled something fishy and decided to issue a sell at $1.97 (go back and read 8/7 & 8/8 note). We got out that day at a price of $1.9736/share - earning +52% in two months. Not quite the 12-18 months. It is currently selling for $1.44/share, good move indeed.
3. Exciting Speculation - these are the potential homeruns or duds. But I do my homework and we can make some serious money on these babies. There is no time frame, we have to simply touch and go. Obviously these guys are the most risky among our holdings - so use your own discretion when buying these, they are: IDWD / MIDS
Example: We have made good money by buying and selling IDWD in several occations. The stock traded between $0.70 - $1.20 most of this year. My current 15,000 shares went from $0.72 to $1.35 as of today's close - up over +86%! It went from the bottom of the list to one of the top recently (see my note yesterday). I have several automatic sell limit orders at $1.74 to $2.75 I suggest you do the same.
4. Quick trades - once in a while, when I see an opportunity, I advise you of a quick trade generally lasting few days. We have made some money buying and selling OIH and shorting KRY and HYTM. Although I sometimes tell you about my day-trading activities utilizing the QID and QLD, those trades do not get calculated in Acetraders performance figures. Those are totally separate basket of money.
I hope above analysis helps. Please understand that it is too hard for me to write everything that goes through my mind regarding the choices I make. After a while you will get to understand my thought process and my style through this blog. I sincerely hope that you learn to become a regular saver and an informed investor. Investing is never ending endeavor - you will do this until you grow too old and can not see or hear. So do not try to hurry - learn it slowly and enjoy the process.
P.S: Buy NTE at current price. It is on a fire sale! I will do a detailed write up soon on NTE again. Buy things when everyone is selling (lesson number 27). Happy investing ...
Yesterday, I gave you the year-to-date performance figures as well as complete list of our holdings. Some of you are confused. Especially the newer readers to this blog. If I were them, I would be asking "So what do I do now?". Thus, to help the new members as well as reviewing sake for the old timers, let me give you an overall review of our work.
Most importantly, please go back and re-read two of my previous notes: #1. "Investing 101" dated 4/9/2006 and #2. "How to get Started" dated 4/16/2006. Even if you think you've read it before, please read them again (it takes less then 5 minutes) because it will allow us to be in same wave length - so to speak.
Currently Acetrader portfolio carries twelve (12) different stocks. We will hold between 10-15 stocks at anytime but no more. Please understand that by having 12 stocks in different industries eliminates over 90% of unsystematic risk in a portfolio. If you were to invest in 100 different stocks, it will eliminate 97% of same risk. So by buying 90 more stocks you only eliminate 7% more of the risk - does not make sense to most of us. So, we will concentrate our effort on 12 players. Now, allow me to divide those players into different catagories in order for you to better pick which ones to hire first for your team.
1. Marriage material - these are long term commitments, although I gave you target prices for these we will continue to hold until something fundamentally goes wrong. Ideally, we will never sell these but we probably will some day. Consider these to be your core holdings, they are: RICK / UTK / NTE (you can buy these anytime, including now).
Example: We bought UTK (4/21/06) at $14.35 and placed a target price for $24/share. On 8/4 UTK went over the target price of $24 already. However we did not issue a sell. I believe this will go much much higher in the future. Although I changed the target price to $28 yesterday, we probably won't sell it even if it gets there. At least I won't - you can do whatever.
2. Intermediate Opportunities - these we expect to hold for 12-18 months unless the target price is reached before then. Most likely we will sell them once our objective is met. As always, I let you know when I decide to "fire" them. With these players I believe I found some value that most wall street people missed. Too many people are emotional - I generally leave the emotion outside when money is involved. Stocks in this catagory are: EXPEZ / AUTO / BYTH / IGLD / XMSR
Example: We bought PRZ (5/25 & 6/6) at average cost of $1.29 and place a target for $2.5 but by 8/8 I smelled something fishy and decided to issue a sell at $1.97 (go back and read 8/7 & 8/8 note). We got out that day at a price of $1.9736/share - earning +52% in two months. Not quite the 12-18 months. It is currently selling for $1.44/share, good move indeed.
3. Exciting Speculation - these are the potential homeruns or duds. But I do my homework and we can make some serious money on these babies. There is no time frame, we have to simply touch and go. Obviously these guys are the most risky among our holdings - so use your own discretion when buying these, they are: IDWD / MIDS
Example: We have made good money by buying and selling IDWD in several occations. The stock traded between $0.70 - $1.20 most of this year. My current 15,000 shares went from $0.72 to $1.35 as of today's close - up over +86%! It went from the bottom of the list to one of the top recently (see my note yesterday). I have several automatic sell limit orders at $1.74 to $2.75 I suggest you do the same.
4. Quick trades - once in a while, when I see an opportunity, I advise you of a quick trade generally lasting few days. We have made some money buying and selling OIH and shorting KRY and HYTM. Although I sometimes tell you about my day-trading activities utilizing the QID and QLD, those trades do not get calculated in Acetraders performance figures. Those are totally separate basket of money.
I hope above analysis helps. Please understand that it is too hard for me to write everything that goes through my mind regarding the choices I make. After a while you will get to understand my thought process and my style through this blog. I sincerely hope that you learn to become a regular saver and an informed investor. Investing is never ending endeavor - you will do this until you grow too old and can not see or hear. So do not try to hurry - learn it slowly and enjoy the process.
P.S: Buy NTE at current price. It is on a fire sale! I will do a detailed write up soon on NTE again. Buy things when everyone is selling (lesson number 27). Happy investing ...
posted by Jaewoo | 7:44 PM
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