Monday, June 27, 2005

 

Welcome back WSCI

All in all, it was a good day today, as my porfolio gained about $3300. I bought back 2000 shares of WSCI right before the close at $3.81. The stock is down 40 percent from the high it hit on Thursday. I think it's oversold. The stock hit a high of $3.80 on Wednesday of last week, right before the earnings were released. There's plenty of support under that price. All those people who missed out on the last week's rally will be eager to get back in. Although it's possible the stock will continue to drift down, I think the balance of probabilities favors a rebound above $4, especially since there are plenty of shorts who still need to buy back their shares.

# posted by Stockcoach @ 10:18 PM
Comments:
moose: you must be new to this blog. If you really want to know what Stockcoach is doing, read some old posts where he justifies his stratagies. Stockcoach has a proven track record of picking value microcaps that even with major diversification, perform well. If you want risk your hard-earned cash with 2 momentum stocks instead of 40+ value stocks, that's your perogative. And you'll certainly see plenty of other investors with well over 500 positions (i.e. index funds). In essence, you're criticizing his risk tolerance, which, IMHO, is pointless since it's not your money being risked.

As to the riskiness of GOOG, there are plenty who disagree with you. Many investors see GOOG as a sure bet, and they may make a tidy profit, but fundamentally, it's very risky with such a high P/E and will take some serious earnings growth to justify. Such rockets are often the first to come crashing down at any sign of weakness.
# posted by Anonymous Anonymous : 4:25 PM, June 28, 2005
 
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