RICK: love & hate
I have one grand mother left - on my mother's side.
She is now 84 years old and still semi-active. Yesterday, we moved her into an "assisted living" facility in Long Island. Although I felt that this was a good move for her, seeing her cry made me feel uneasy. The facility was clean, professional staff was on board, serves three meals and snacks everyday. I was happy with everything except that most people in that place had some shades of Alzheimers conditions.
My granma's new roommate for instance (she says she was 82) asked us who we were about 5 times. She was like a fish. One quick turn and forgets the whole thing. Do you know why fishes can survive in a small fish bowl? Because after a quick turn, it thinks it is swimming in a new water. The fish bowl seem like an ocean to them. A new place to swim every time.
RICK just made a move yesterday: up 8% on a low volume.
Hopefully this marks the end of selling that started in mid October. The 4th quarter and year-end earnings will be released on December 28th. Investors will try to buy the stock prior to the announcement. That leaves us with only three (3) days of buying before the earnings. Let's watch. Remember, we have not sold any of our holdings in RICK yet. In fact, it is still the largest holding in our portfolio.
I know that some of you were getting worried about RICK. I mean it did had a 35-40% drop between October - December period. It was easier for me to handle this because our cost was $4.80/share. Many of you have much higher cost. For those of you, this should be a welcome time. A time to buy RICK on the cheap. The problem with most investors is that they do not understand the value of holdings.
People only look at the price they bought versus the price now.
If it happens to be higher - they are happy and feel smart.
If it happens to be lower - they get upset and try to sell.
I have no patience for such dumb people. These kinds of people should not be investing in individual stocks. They should buy mutual funds - managed by active human managers. These people should not even buy ETFs (exchange traded funds - which I prefer to mutual funds).
One person had told me "RICK is such a bullshit, low quality company that it fell 35% in such a short time, and for no good reason - I'm selling" ( by the way, RICK was $5.20 when he/she said that). Smart move, oh great one.
The truth is that RICK is not a proven, quality player yet. But then, you all knew that. This company basically buys and manages "strip clubs" (quality ones though). Not a rocket science. Still too small for the big wall street boys to enter this game (excellent!). The reason I liked RICK: 1. the CEO's vision made sense to me. 2. the price was fair. 3. business was simple. Unless there are information I am not aware of (non-public info.), I feel that the business is sound. Let's confirm it on Dec. 28th with all the pertinent financial numbers.
Just so you know, 40% price move up or down is quite "normal" for stocks in our universe. Here's an example: Do you think Apple (AAPL) is a quality company?
Let's look at the price move of Apple in 2006:
January 2006: $86.50
June 2006: $50.16
November 2006: $93.15
Today: $83.05
The move Apple made between Jan-Jun 06' is ( - 42%) then Jun-Nov 06 ( +82%) now back down to $83. Such is a life of stock investor. You now know that 40%+ moves are not only reserved for small, unproven companies. Apple with the iPod does the same thing.
Human emotion is not predictable.
One day RICK is your love, the next it is a bitch.
I am sticking with my love just a little longer until I find out the truth. The truth will be told on December 28th 2006. Merry Christmas!
She is now 84 years old and still semi-active. Yesterday, we moved her into an "assisted living" facility in Long Island. Although I felt that this was a good move for her, seeing her cry made me feel uneasy. The facility was clean, professional staff was on board, serves three meals and snacks everyday. I was happy with everything except that most people in that place had some shades of Alzheimers conditions.
My granma's new roommate for instance (she says she was 82) asked us who we were about 5 times. She was like a fish. One quick turn and forgets the whole thing. Do you know why fishes can survive in a small fish bowl? Because after a quick turn, it thinks it is swimming in a new water. The fish bowl seem like an ocean to them. A new place to swim every time.
RICK just made a move yesterday: up 8% on a low volume.
Hopefully this marks the end of selling that started in mid October. The 4th quarter and year-end earnings will be released on December 28th. Investors will try to buy the stock prior to the announcement. That leaves us with only three (3) days of buying before the earnings. Let's watch. Remember, we have not sold any of our holdings in RICK yet. In fact, it is still the largest holding in our portfolio.
I know that some of you were getting worried about RICK. I mean it did had a 35-40% drop between October - December period. It was easier for me to handle this because our cost was $4.80/share. Many of you have much higher cost. For those of you, this should be a welcome time. A time to buy RICK on the cheap. The problem with most investors is that they do not understand the value of holdings.
People only look at the price they bought versus the price now.
If it happens to be higher - they are happy and feel smart.
If it happens to be lower - they get upset and try to sell.
I have no patience for such dumb people. These kinds of people should not be investing in individual stocks. They should buy mutual funds - managed by active human managers. These people should not even buy ETFs (exchange traded funds - which I prefer to mutual funds).
One person had told me "RICK is such a bullshit, low quality company that it fell 35% in such a short time, and for no good reason - I'm selling" ( by the way, RICK was $5.20 when he/she said that). Smart move, oh great one.
The truth is that RICK is not a proven, quality player yet. But then, you all knew that. This company basically buys and manages "strip clubs" (quality ones though). Not a rocket science. Still too small for the big wall street boys to enter this game (excellent!). The reason I liked RICK: 1. the CEO's vision made sense to me. 2. the price was fair. 3. business was simple. Unless there are information I am not aware of (non-public info.), I feel that the business is sound. Let's confirm it on Dec. 28th with all the pertinent financial numbers.
Just so you know, 40% price move up or down is quite "normal" for stocks in our universe. Here's an example: Do you think Apple (AAPL) is a quality company?
Let's look at the price move of Apple in 2006:
January 2006: $86.50
June 2006: $50.16
November 2006: $93.15
Today: $83.05
The move Apple made between Jan-Jun 06' is ( - 42%) then Jun-Nov 06 ( +82%) now back down to $83. Such is a life of stock investor. You now know that 40%+ moves are not only reserved for small, unproven companies. Apple with the iPod does the same thing.
Human emotion is not predictable.
One day RICK is your love, the next it is a bitch.
I am sticking with my love just a little longer until I find out the truth. The truth will be told on December 28th 2006. Merry Christmas!
posted by Jaewoo | 8:31 AM
2 Comments:
Why do you suggest buying GDX instead of GLD for gold investing? I am looking for a long term vehicle to hedge against the decline of the US dollar + geopolitical uncertainty.
I researched and seem to like GLD better since each share actually represents 1/10 ounce of real gold.
Your thoughts please.
Thanks.
-Jo
in the comments section of your december 19th. blog some one is trying to advertise how to enhance ones sexual performance.
I hope he knows people who read your blog are more educated than to take his scam seriously.
I now have 4000 shares of qid at 51.50 and 8000 shares of rick at average price of 5.75 ,and one thousand shares of AXR short at 125.
I will sell QID at 56 , and Rick at 8, and cover AXR at 90.
Gus
Post a Comment
<< Home