TRID: My 'Strategy'
After getting Stopped out at $14 and then watching TRID drift even lower to ~$13.50, I decided to wait to see how low the weakness would take things.
When it rose above $14 and then $15, I knew that the time to buy had come, but I was waiting for a pullback. After watching it inch up every day until it was above $16, I knew that no major pullback was in the offing. That is, I wasn't certain if the buying was widespread enough to get back in. It looks like it is.
I will buy more on weakness (there is always that panic day each quarter). In any case, I think $20 is likely in the next 3 months, so that would be a tidy 20% gain.
In my own portfolio, I have 1000 shares and a lot of Jan calls.
The only concern I have is the US retail weakness. I do believe that it could slow down LCD TV sales but I believe global demand will offset that weakness. More improtantly, it's how the stock market reacts to that weakness.
In any case, TRID is more than an investment in potential grwth. It i sbuying a wildly undervalued company.
When it rose above $14 and then $15, I knew that the time to buy had come, but I was waiting for a pullback. After watching it inch up every day until it was above $16, I knew that no major pullback was in the offing. That is, I wasn't certain if the buying was widespread enough to get back in. It looks like it is.
I will buy more on weakness (there is always that panic day each quarter). In any case, I think $20 is likely in the next 3 months, so that would be a tidy 20% gain.
In my own portfolio, I have 1000 shares and a lot of Jan calls.
The only concern I have is the US retail weakness. I do believe that it could slow down LCD TV sales but I believe global demand will offset that weakness. More improtantly, it's how the stock market reacts to that weakness.
In any case, TRID is more than an investment in potential grwth. It i sbuying a wildly undervalued company.
posted by Andrew at
8:22 AM
3 Comments:
Absolutely agree, yes Andrew, while buying a cheap company like TRID appealed to me, I snooped up on some shares around 15 myself.
The US retail weakness is what made me nervous about my Jan 20$ calls -- which I then replaced with 20$ April calls.
I do own some 17.5$ Jan calls though.
The stock is catching momentum and I will most likely dispense my positions in TRID after the earnings release, which I believe should be great -- their guidance could be softer though.
Good strategy Andrew…but I think there will be one big downswing before Jan. So you expect Fed to cut again on OCT 30th ? I think it suits Fed to cut during Nov-Dec just before the holiday season than now. Thoughts?
When it comes to more cuts, I think the market will be very caught up in the will-he-or-won't-he.
I see a different Fed under bernanke than under Greenspan. Greenspan was more reactive, waiting for the facts to roll in before doing anything.
In contrast, Bernanke seems to be a bit more proactive.
I think Bernanke sees some softness in the US market and he is playing for time in th ehopes that inflation continues to fall under his 2% range.
So far, commodities don't seem to be supporting his approach: inflation is strong.
I think we'll see a small cut sometime Dec-Feb, depending on retail reports.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home