Faris Sleem

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.

Nicely done Chris. I’ve been gradually buying a few names on this market weakness as well. A few other names that are tempting over $3 are RADA, FKWL, and OESX but I’m trying to stick to the Game Plan.

VERY unusual instance because most stocks remain list after bankruptcy and add a “Q” at the end of the original ticker. I’m assuming the brokerage firm would just liquidate the position for you.

Hey Allan,
APPS is seen as a 5G play and has more aggressive growth, which has caused an unbelievable run up. SCKT does not have a dog in the 5G fight so it probably will not get similar hype.

The SEC announced today that it is looking into brokers restricting stocks, adding that they want to support “retail investors”. That is huge moving forward, but unfortunately slowed down the momentum on all these names. It was clear manipulation, plain and simple.

Awful to see, but at least more liquidity is coming to smaller stocks. I see that as a huge plus. ENG, CLNE, KOSS, etc all ran up due to traders jumping in on a solid underlying company.

We definitely need to see more rules for transparency from brokers and funds, as well as hard consequences for their actions.

As investors, we’re used to managing risk and always playing at a disadvantage against smart money. I think that most of these high short interest stocks were very risky and people are blaming a rule-change for taking on too much risk. We all have winners and losers, we just need to stick to our Game Plan and stop trying to rationalize the markets. I think earnings and Fed speak is more important than GME right now. Just my 2 cents.

We answered a similar question in last month’s issue, reeasuring subscribers to stick to the Game Plan. If you want to buy a stock and deviate from the Game Plan, then you will have to adjust your risk management and expecations of its performance.
As other subscribers have stated on the forums, you would have to create other criteria to invest with a different strategy. CLNE has had a unique run up because of the strength from energy stocks, which was followed by positive headlines and a huge shift in U.S. politics. The initial run up from energy stocks was aggressive. That was followed by CLNE releasing positive news, which was followed by Democrats taking full control of the House, Senate, and Presidency. That was a significant shift that has been moving clean energy stocks much higher.