I should have added a couple of other considerations: First, this is the largest/strongest company in a short-term weak industry, which is what allows me to be so confident of the future - I wouldn't take that attitude toward holding a smaller, weaker player. #2: Being confident is no reason to throw risk management out the window. If you are holding so much that you need to be worried about it, sell down to the sleeping point so you can hold on for the long run.
Be patient. Industries do not go from out of favor to in-favor in weeks or months; it takes years. If you don't have the patience to wait for years for investors to become more rational toward an industry, you'll never get anywhere in the stock market. I've been doing this for decades and the fundamentals of nuclear power are sound and people are extremely pessimistic about the short-term prospects (rightfully so), that's all you really need to know. The big payoff belongs to those who can hold through this and be patient and then once things start to go in your favor, don't sell until everyone is excited about U miners.
well said thornflesh. I too have been in the market for a while - 2 things are key here - Capital + Patience. Nuclear is here to stay. This is the time to buy and just relax. Collect the divy and forget about the stock. one to two years down the lane - you will do good.
I am planning to sell $18 June puts when the stock drops to about 18.25 ish...... should fetch me $1.50 - I will be happy if assigned( my cost basis will be $16.50 if I exclude commissions)
No rush here........
Commodity stocks are really hard to understand. I guess no buyers bceause:
1. Uncertain U environment
2. Street not convinced probably thinks next quarter they wont make it
3.This happens to low volume stocks ( most days the volume is under 1M)
4. Smart buyers are accumulating - only long term investors here.