Many years ago I worked closely
with this loser broker when I held a position in a tech fund. He constantly tried to give me
investment advice while I was running my own plays. I always wondered why the
guy who was trying to give me investment advice was wearing a fake Tag and I
was wearing a Patek. Call me a pompous
prick if you want, but I assure you it wasn’t because he didn’t like
watches. This guy was full of himself;
he wore fake brands, bought his girlfriend a fake diamond ring, and drove a maximum
leased 911 turbo. This guy was only interested in his commissions and
himself. He was not interested in
helping me or anyone else. The watch
thing made me realize that I was better at his job than he was.
Over the years I gained confidence in my “uneducated” trading discipline. Probably the key to breaking free from a broker is to gain confidence in your own ability to manage your own money. Twitter has honed my abilities and helps me stay disiplined. You new traders have no idea how good you have it!
It was a great week this week,
depending on your perspective. I was way up earlier this week on $NEP, $PUDZ,
$SYMN, $YGII, etc and so forth (so many you all know what they are!). I sold a bunch of my $SYNM in the 3’s even
though I love this company. I now feel uncomfortable
because I was holding a “mega” long position with a very low average. Now it’s time to regain that position, but it’s
not easy as I’m not a momentum type of trader.
More on that in a minute.
$NEP and $PUDZ both put out their
numbers. Overall I thought both
companies did pretty good – and considering Puda doesn’t do funny accounting
tricks like some of the American coal companies I was impressed. Needless to say I continue buying the dips,
but I was very surprised to see it hit $4.05 today. That’s like .57 pre-reverse split. Seems very unreasonable, the typical “reverse
split” mentality is affecting the stock.
Puda has a good thing going; they
are a profitable company in an industry that’s at the very bottom. Their biggest problem is their marketing
sucks. The conference call was terrible,
the CEO can’t speak a word of English, which I really have no problem with, but
when you’re trying to get investors excited about the future you need to have a
good presenter. Laby Wu stepped in, but
even she couldn’t excite the people on the phone. Then again the people on the phone were
nobodies as far as I could tell. They asked
stupid questions like “when are you going to the amex?” — bottom line is Puda
needs to get the word out, and they just are starting to figure this out. …but regardless, nothing tells a great story
better than good numbers.
Stare at a spreadsheet long
enough and the numbers tell the truth.
That’s a fact.
Now $NEP, on the other hand did
incredibly well. They just uplisted and
they’re doing a tour across NYC. They
have a good management team who seem to always deliver. Again, I’m buying this on the dip, not in the
6’s, but certainly in the 5’s. Look
forward to their first conference call next quarter.
Let’s talk about the core
position issue. Why on earth should one
feel uncomfortable selling a mega position of $SYNM when the price they sold it
at is higher than what they could buy it at?
I guess that’s what makes me unique.
When I sold a big chunk of my $SYNM I was left with very little. Today I picked up some at $2.85 even though I
anticipate the stock could go as low as $2.50.
Why did I do this? – it’s the “Fuck
You Surprise Factor”. In a stock like
$SYNM where the fundamentals are all their, where they continue to deliver and
update their shareholders on the progress of their plant – where the department
of energy, at any time, could make a major announcement and flood them with
cash… well it’s a pretty obvious scenario that any bit of positive news could
send this stock up and a big “Fuck You” to all those who are short and/or
missing the bus. I’m not prepared to
wait or chase. Instead I bought some at
$2.85, and I will continue to buy all the way down to $2 if I have to. Next quarter could be very interesting. Sure I could have bought my mega position
all in at $2.85 over the last few days, but that’s never good either, better to
buy over a quiet period and get a low average before the next spike.
This type of buying probably
surprises most of you short term traders.
Those of you looking to make income from day trading will only get
heartburn from following me in a bear market.
On the other hand, when the market turns around I usually win huge from
all the bets I place. There are far
superior momentum traders out there. @Kunal00
has always been a favorite of mine – he’s simply incredible, and @CopperSTL is
proving she can hold her own. She makes some
risky bets in comparison to me – she offers full disclosure – and if you look
at the performance of her picks overall they have performed well. Take $RTK for example. She was playing this thing at the bottom, and
I sat there waiting. I finally
participated after a 100% move – starting to buy at $1.15-$1.23. It’s blew through $1.50 today. Unreal. The other thing about Leigh is she’ll take
the time to talk to you and teach you what she knows. She has no heirs about herself; she’s a total
package with incredible southern charm.
We have more bloggers joining us
soon, stay tuned.
Anyways, that’s enough rambling
for today. Hope you get the difference –
I am a long term investor, I seek out heavily undervalued companies and dump a
bunch of money in them until I am satisfied with the number of 0’s after my position. While I may not always agree with Kunal or
Leigh or anyone else, it has to do with time frames and different trading
styles. The beauty of Twitter is you can
follow who you want, when you want.
Next week it’s re-investment
week. Between this week and next week I am adding more cash into the market,
even though I know we could see a pullback, I’m buying this pullback as I am
anticipating a run in some of the plays I’ve been buying over the next quarter.
Good luck ya’ll, have a great