Friday, June 29, 2012


Life in a parallel universe


As I sat back and watched a great program on the universe and so many new theories I couldn't help but wonder about my own path through life. If I was losing money on the woes of Europe did an alter ego in another parallel universe short Rim at $20 and is now about to retire. This opens up avenues of so many new questions. 

When the economy is in question and the markets have chewed away at some of your net worth its hard not to question what you could have done differently. Since the next major events have not occurred yet could I not try to alter my fate right now? Perhaps I should load up on Mart Resources- MMT not because of yesterdays announced dividend but because it looks more likely this trend may continue with the company. Although after the first dividend date a lot of investors run like school kids thinking they just stole something. They run with their dividend as the stock price falls sharply but this time maybe we will see a huge buying opportunity. I will wait on the sidelines for a sell-off then look for a position. Running in now could mean paying a premium only to have to watch a sell-off I expect is coming.

After a few years of trading I have started playing more and more scenarios through my head before making a move. It doesn't always guarantee success but it does help to understand there are many ways a story can go bad. The first question should be an honest approach to why you really like the company and will the masses feel the same love affair after you have a position. Has there been some similar companies gaining traction in an unstable market? A low float and revenue usually spells an increase in market cap but when you look at Asantae it seems to break all the rules right now. Its score card has been nothing short of amazing yet the investment community keeps saying show me more and prove your headed in the right direction. The company has good cash flow and the growth rate reminds me of Mona Vie not so long ago.

Network marketing has proven to be a winner for so many products and weight loss is a massive sector that Americans embrace everyday.This "show me" market wants more and more as proof of a sound business model before diving in. Yet along comes a gold company with some core samples that are less than impressive and the stock is off and running. I personally think this shows how many junior investors are in the market these days playing the next big hype story. A more seasoned investor doesn't fall for hype stories and does proper due diligence. He doesn't want momentary success he wants strong growth backed by fundamentals. Well maybe that's reaching a bit, but hype only has a limited shelf life and new investors can easily turn out to be the new longs but not by choice.

The point to all of this should be that investing on your own is a huge step. It has the possibility to change your life forever. It could be good or it could be bad so don't take a leap of faith based on hype or your own excitement. Take a leap based on strong due diligence and a strong understanding that profit will be made. Sometimes this approach will slow you down but it will almost certainly prop you up while others fall and it won't keep you up at night as well. Investigate strong buying and strong selling. You may find that someone had to dump a stock because they bought on margin and created an instant opportunity for those watching closely.

On a final note, keep an eye on gold. The price of gold seems to go up and down without a direct influence from any global events. I suspect that some big players have tried to manipulate its price and see if they can cause a run in either direction. In the end I think prices will continue to climb and gold juniors will be the story of the year its just a matter of which ones to watch and which ones to load up on.





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