Forum Replies Created
Faris SleemKeymasterNovember 5, 2023 at 6:57 pmPost count: 142
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.Faris SleemKeymasterAugust 6, 2023 at 2:50 pmPost count: 142Faris SleemKeymasterMay 7, 2023 at 6:20 pmPost count: 142
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.Faris SleemKeymasterApril 9, 2023 at 6:30 pmPost count: 142
Great job on reloading some shares of CTHR Mitchell!
The only thing I’d add is that it is common for stocks at risk of delisting to be bought up until they reclaim the $1 price level. This allows them to avoid delisting and keeps investors happy short-term. There is no guarantee that this is the reason for recent accumulation, but it is within the 180-day window that the Nasdaq provides for the stock to bounce back.
Institutional/insider buying, social media buzz, and upcoming news are also possible scenarios but there are no signs of this yet.Faris SleemKeymasterApril 10, 2022 at 5:39 pmPost count: 142Faris SleemKeymasterApril 10, 2022 at 2:32 pmPost count: 142
Seems like this adds the possibility of a merger or acquisition. Considering the stock is trading around its book value, I’m hoping that any merger/acquisition would be at a higher premium for shareholders. Either way, I think that’s a positive news for a company that is in need of a turnaround.Faris SleemKeymasterFebruary 28, 2022 at 2:53 pmPost count: 142Faris SleemKeymasterNovember 30, 2021 at 1:59 pmPost count: 142Faris SleemKeymasterNovember 30, 2021 at 1:57 pmPost count: 142Faris SleemKeymasterNovember 7, 2021 at 3:43 pmPost count: 142Faris SleemKeymasterOctober 10, 2021 at 4:18 pmPost count: 142
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.Faris SleemKeymasterAugust 22, 2021 at 4:32 pmPost count: 142Faris SleemKeymasterAugust 22, 2021 at 4:30 pmPost count: 142
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.Faris SleemKeymasterJuly 4, 2021 at 2:02 pmPost count: 142Faris SleemKeymasterJuly 4, 2021 at 2:00 pmPost count: 142
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.