Nothing wrong with disagreeing Wal. You have a plan, it might not be my plan, but it doesn't have to be. There is
only one thing you must not do under any circumstance. Are you ready? Do not hide Infn in your basement, even if he begs and says he now loves Ohio.
Great post even though I totally disagree! What you're saying brings up the critical question. Are markets efficient. My answer is clearly not. At the very least it takes awhile to get to the "correct" price. What I do is try to figure what the stock should sell for. I subtract the current price from my estimated value. Then I divide by the number of shares I have. I believe Xin should sell for $5. Current price is 1.74. The difference is 3.26. I have 4,200 shares. So I will sell 300 shares for every 25 cent increase.
Wal, the market is always correct whether you agree with the
markets or not, because the forces behind the movement of the markets are not dictated by what you or any other individual think, or care about your pe of 2. You either move with the herd or the herd leaves you behind. It's why
you trade around a core position isn't it? Since you are
thinking long term on the stock (which is fine), you trade
around it to either make money or lower your cost on the core. Or as Jin says by doing so, you end up with free shares. So you all may pump, but you are also very aware of
the facts, otherwise, you just would have bought and not sold any. So almost everyone is as "long" as the trade.
The price of a stock is the price of the stock. That is a tautology. But the market in the short term is not always correct. That is where value investing comes in. If the earnings are valid and if they hold then this stock is massively undervalued.
Wal,even if a company is solid, it doesn't matter when a profusion of events converge, your pe of 2 etc. takes a back
seat to events. You say you think it must be 1.2.or 3 (or all 3 items). It appears the posters do look at one or two
factors, now take all those factors and add them to the whole. EJ, while he was rambling today saying he couldn't
understand, made a statement. If he sat back and looked at
that statement, he would have come to a logical conclusion.
IMO you folks focus on what should be, not what is.
Maybe you aredifferent from inch who is apparently paid by the fund behind this, possibly renaissance tech., to bashthis stock so that they can buy cheap shares. You try to buy at a cheap price, based on what your perceived fair technical price. You are a small trader.
But I am very different, a persistent value investor. I do trade for a profit. But my purpose is to protect my investment. I always throw my money back into this company, including all the profits from trading. By doing so, I accumulate and maintain more shares, while this year I gained positive $6k return although XIN is down more than 30%.
Perhaps you'd like to tell me what it does matter then? There are only three ways to explain the current price:
1. The earnings are bogus.
2. The earnings will soon collapse.
3. The market is nuts.
I only buy stocks trading below half book value, and 5 P/E. Once I am in and the fundamentals do not change, I will never sell a single share for a loss, even if it drops to 0. But I do trade some around a core position.
I believe I am the most stubborn contrarian investor hated by your type.
I am a left-side contrarian value investor. Buy more when it drops, and take profit on it's way up. I want more shares. Thanks.
The market is a war between left-side buyers and left-side sellers. We will see who win evetually. Let the market play out.