the street has consistently shaken people out and bought up on the cheap, only to turn the media tides the other way and turn it into a profitable holding. On the other side, when the markets are clearly topping out, it is the professionals who are b.s.'ing the individual into believing that the love affair will continue forever.
What is a small timer like myself to do?
I like to look at the stock as a business and when the market is throwing me a deal (based on my own valuations) get in as an "investor" - a highly overused term these days. Anyhow, and actually hold the stock until my valuations tell me that it is overvalued. Then I sell and wait for the next calamity.
One particular instance of this recently was FEED a Chinese hog farm. They are feeding the ever expanding Chinese population and making good money for it. For a few reasons, their stock has taken a beating, dropping from greater than $20 PPS to less than $2. At $1.50 I started buying.
Over the past couple of weeks I have established a rather large position in the stock which is now paying off handsomely. How did this happen? I looked at the numbers, bought when everybody was selling and keep reminding myself that I am an owner in a business, not holding a lottery ticket that goes up or down daily.
My message - do your own research and do not listen to the Wall Street media machine. They want your shares cheap.
Good Luck,
Mr. Boo.
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