Only buy when things are negative. This gives you an edge but is no guarantee. I bought GM before it went under. Banks in 2008 same thing. But it does help. The trick is the stock and even better the whole sector should have nothing going for them. Then you have to start using every tool to pick the right target. Just as an example YZC. Why would anybody buy that.
I agree, I jumped on board today and bought a few shares, and also a few LEAPs. I am an herbalife long and because of Ackman I've also been keeping my eye on JCP for quite some time. Now is a good time to get in, also I dont see how Ackman's resignation could be anything but a good thing. This stock carries a lot of risk, but the upside from a potential recovery could be very sweet. hoping for a bad-but-not-as-horrible-as-expected earnings and then some progress being made now that some of that board drama is over
Ackman's resignation was like washing his hands before the crucifixion about to unfold. This is like GM 3 months before the Great Recession began. There is nothing to do to stop it and he cannot sell his shares for some time. His resignation will probably speed up his time until he can sell. Wonder how he can now hedge based on his insider's information position. OK with me he goes down. He has no public respect for others he injures. He could do his thing with a bit more dicorum