Faris Sleem

Hey Lee, GVP executed a reverse split to avoid delisting. This can be overlooked if financial performance is improving, but it is not. Reverse splits for survival are a slippery slope and we can always revisit the stock later. The current market state for small stocks is less than ideal, but we cannot make exceptions unless financials say otherwise.

I also wanted to add that it is a shame to see such a great company perform poorly. This is one of the names I was most excited for on a 5-10 yr investment horizon. But we can always revisit if financial performance improves! Cheers.

Good thinking Mitchell. Growth names raise capital a good bit and trying to maintain listing can be tough when demand lightens. Retail space will have some outflows. But the extent of those outflows are definitely in question. Personally, I think jewelry demand won’t soften as much as other products but we’ll see.

I’m in the same boat Chris. I still own a good chunk of Safe Bulkers (SB) as well. The only added risk that can slow down earnings growth is the start of this rate hike cycle. High debt stocks are likely to lag due to lower earnings.

There is definitely some unusual CTHR insider buying pressure to say the least! If you look at the NASDAQ page, it shows huge accumulation over the past 12 months but no sellers whatsoever. Good find!

Don,

If you have not yet entered MACE, it is definitely trading at an attractive price point. While we were not pleased with the earnings selloff last quarter, the stock still has a Bowser Rating of 10 and has gotten much cheaper.
Your goal is not to nail the low with your entry point, but simply get a decent average for your long-term position. Although small cap volatility promotes active trading, you want to keep the entry point simple. Since MACE is a value stock, as long as it is trading at an attractive price relative to its valuation then you can enter/reenter.

Hey James, there is no doubt that a few of the recent picks have been underperforming. This goes hand-in-hand with small caps underperforming as a whole as well as pullbacks following recent run ups. For example, let’s take a look at the stocks that you mentioned. Upon recommendation, we mentioned reasonable entry points for PRKA and MNDO given their slight overvaluations. If you bought the stocks without waiting for the entry price we had suggested, then you might want to tweak your entry points or position sizes.

Of the past 12 picks, only one stock (MACE) has dropped 50% without doubling. Six of the 12 stock picks have doubled, including the aforementioned SGRP. If you took a loss and did not get out on the SGRP spike, you also might want to test out setting GTC (Good ‘Til Canceled) sell orders to avoid missing out on a good exit price.

As for general portfolio management, it’s always a good bet to follow the Game Plan. By following it closely, your portfolio should not be down 80% nor should you have losers that exceed 50%. The Game Plan also suggests diversifying by investing in at least 8-12 stocks to limit risk exposure. If you have any questions or comments, feel free to reply to this thread.

Don,
This is a terrific suggestion because it ensures that the investor is able to take profits on any temporary price increase. It would especially work for investors that do not have time to follow their holdings or the markets as a whole.

The only downside to this method is that you may miss out on more short-term upside. For example, if the stock spikes up 70% on news, you would miss out on a good chunk of the upside. However, it is still the best method for exiting when the stock doubles and keeps you disciplined in following the Game Plan.