Hello and welcome to our community!

[npg]

Originally Posted by joshuat

"Unfortunately the buy/sell/hold decision happens somewhere around the fairly valued point.

There. You hit the nail on the head! It all depends when you want to sell. Around the fair value point? I guess not. You want to sell when it's overvalued.

So, what does that tell you?

Unless there is absolute market hysteria (and believe me, the FED will create it again once the establishment decided it's time to grab your hard earned posessions again), there is no point even contemplating such a move.

Originally Posted by joshuat

So, my very simple question, where are the prices of MCF and SHLD going, that I should take a guaranteed 40% loss of profits?

SHLD with a current earnings yield of 5.6% is reasonably mediocre. MCF which has an incalculabe earnings yield doesn't look such a good prospect from that perspective.

However, you probably have some very good understanding of MCF. Maybe you slept with the CEO? What do we know.... (we will know for sure in 6 months though. If the price is exhorbitantly high you have definitively done the immoral sacrifice :P:P:P:P:P ).

I'd sit on my ass and increase my positions by injecting new capital from any surplus fixed income.

[maxwes]

Alright, bro

MCF - difficult to value for sure. Technically it is very sound right now. Using weekly periods, this stock is making a nice run. Well above the 30 and 50 day MA. Volume has picked up heavily since early April. Prior to its move in April, fund ownership looked like this:

June 06: 8
Sept 06: 8
Dec 06 : 10
Mar 06: 9

This stock is being accumulated. I suspect June 07 will look good. If it were me, I would not sell. Gotta go with the big money. Since I am not sure about value and don't know a lot about the company, I would most likely sell if it broke through the 30 day MA (again using weekly periods).

Regarding SHLD. It appears to be overvalued based on current growth estimates (but you may know more then I about this). Technically, it has already broken down through its 30 day MA (using weekly periods). This is enough for me to avoid buying in right now. You could wait and see how far down it goes before buying in.

[theregans]

Hi y'all,

Newbie from Canada here!!! I have read many an investment book especially the ones about Buffett, however no other book has lit such a fire under my butt as Rule # 1. I have started implementing it recently. I look forward to an early retirement where my new business card will say "William R. Investor" on it......

Oh by the way, after reading about Garmin, I actually went out and bought a GPS for my car. All I can say is WOW!!! theses things are amazing!!!! And no I don't own the stock ........ LOL Its too expensive!!!!!

[sanjayshetty]

Hi capp53,

I'm not aware of the company you refer to, I'll check out if it's listed in India.

What are your sources of data in the Indian Stock Market?

Regards,

Sanjay Shetty

[investor999]

..Hello to everyone! :-)
im a 31 year old that has never invested before, but since phil's book, ive been really eager to start investing!

ive read the book twice, and have tried making my own spreadsheet to automate the growth rates etc, ..and then i came across this site and found the automatic MOS calculator! This saves a lot of time! Are many of you from the UK like me?

Site looks ace, keep up the good work!

[nowgofish]

Sanjay, check out this site GlobalTechStock

[npg]

Originally Posted by investor999

Are many of you from the UK like me?

I was born and bred in Bavaria, but live in Manchester UK. Where in the UK are you based?

[dora]

Hello everybody,
I've been visiting this site for couple of months, today is the day to introduce myself. I've been investing in mutual funds for last 8 years, always afraid of stocks. So when I read Phil's book , it made sense to me.
But it seems that it is so difficult to find a company that meets Rule 1 criteria. If the numbers are great , I usually stumble with MEANING !
Any advice on that ?
Dora

[investor999]

Based in the south of the UK :-) Nice and warm down here! :-)

[SBoutwell]

Hi, I'm new to all this stuff and I'm still reading Phil's book....I keep seeing this paper trading theme come up and wondering where and how to open a paper trading account so that I can "practice" when I get ready?