I know how you trade Ira and just as you appreciate that my methods work
for me, I'm sure yours work for you. I don't chase a bad stock down but
if I fully understand the fundamentals of the company and if I feel most of
the market doesn't understand them, I'll lower my cost basis as much as
possible until earnings show what I already know. I'm trading this one a
bit .. picking up a grand here and there but it's mostly a hold until the
hurricanes fire up over the gulf. I just can't see it going as low as
you talked about, ($25) .. it has a PE of 8.6 now. The CEO made a huge
purchase in the open market at around $30 and I'm going to "bet" with
him.
It bothers me you're on the other side of this one but I've been
at this for 35 years and I believe in my style just as you do in
yours.
All best,
Bob
At 03:59 PM 6/8/2006 -0700, you
wrote:
Bob:
I never understood
averaging in. It obviously works for you. I have had a sell on
this stock for a while now. I posted what I thought earlier and it
appears to be following that track.
I very seldom, if ever, catch a low or sell a high.
My motto has always been, "prove to me that you are going higher/lower and
then I will put up my money".
I
look at fundamentals at times, but my system is a follow the money, price
based system. Obviously your system works for you as you have been at
it for a while and your calls have been very good over time.
I wish you luck with your
trade. I would need some price acton to tell me that it is going
higher rather then fundamentals. I will continue to watch this one. Ira.
----- Original Message -----
- From: BobsKC
- To: realtraders@xxxxxxxxxxxxxxx
- Sent: Thursday, June 08, 2006 2:46 PM
- Subject: [RT] CHK update
- I bought 2K more of this at $27.90 today after Prudential lowered next
year
- earnings by a few cents and some analyst that I've never heard of put
a
- sell on it based on the charts but no fundamentals. I sold 1K at 29.30
- near the close and am now holding 5K. It's as if the Prudential guy
- doesn't know they sold 70% of the next two year's production at $10
and is
- basing his earnings on the spot price instead. Anyway, my cost basis
keeps
- dropping and my confidence in the firm is undaunted.
- Hope everyone here is having a good week with all the
volatility.
- Bob
- oh.. nice call on the market today Ben .. you did well I would
imagine.
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