Wednesday, April 19, 2006



Up 1.1 percent today. A reader asks if I am still long and strong AE, which at one time was one of my largest positions. I must confess that I screwed up a bit. I sold most of my shares when the stock was still in the twenties. I'm still holding 250 shares, but obviously, I'd be happier (and wealthier) if I didn't sell so soon.

I am realizing that one thing I need to do better is follow industry trends more closely. Case in point: MFRI. I sold that stock too soon because I didn't realize how much of a bull market there was in pipes.

With all this in mind, I bought 1300 more shares of OCCF. Fiber optic stocks are red hot now and I think OCCF should benefit from this favorable industry trend.


Industry trends are easy to spot after the fact. I heard secondhand that Cramer mentioned we're in a bull market in pipes, otherwise I would have sold at lower prices - I got lucky. As for AE, most times when one adds to their position, its for a swing trade to lower the cost basis, not necessarily to hold long term - so I don't think selling some AE was a bad idea. Your picks and returns speak for themselves - perhaps you sold AE/MFRI to enter another position which will have an even better return.

I guess what I'm saying is, its a good idea to tweak your investment strategies in hopes of improvement and to adapt strategies towards current market sentiment, but its impossible to argue against your record of market defying returns. If it ain't broke don't fix it.

Keep up the good work - I need a constant influx of your recommendations. And congrats on your huge tax bill.
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