I am watching RSX and RSXJ, a broad Russian index and a small cap Russian Index. Most of the holdings I have purchased in the Russian downturn, I will probably sell when the Russian Small Caps get to a level where that holding has outperformed the broader Russian Index. I will reevaluate at that time my shares of Yandex YNDX, which may turn into a long-term holding in my portfolio. We'll see.
How many economic cycles does it take for a strategy of investing solely in small cap value stocks to maintain higher market value than traditional asset allocation strategies? I woke up with this question in my mind, so, time to Geek out! [more]
I love checking up on the companies I own shares of and the ones I am patiently watching. As I write this I am listening to the investor call from Q2 of Female Health Co FHCO. I valued MCC and AINV based on their dividend, etc. Then I valued LL, SODA, GTLS, LNKD and MNST based on their growth rates, etc. And finally I valued BIDU similarly to how I valued that last batch, but I cut my value in half because investors seem to only be willing to pay about half price for similar growth in a state side company. I am watching LL, SODA, GTLS, LNKD and FHCO for greater than 35% upside. [more]
Recently I have invested in SODA and GTLS because they seem very similar to how GMCR and CMG were late in the summer / early fall of 2012. I think of SODA as parallel to GMCR because people wondered if it was a fad that would pass and have its market share taken by competitors. And like CMG, GTLS has some staying and growing power. All of these cases look to me like irrational Mr. Market moments. I am grateful for the extra help the Nasdaq shorters gave to driving down the price of SODA today. It was much more overdone than it would have been if bigger players hadn't gotten sucked in. It may seem odd to be having fun with this, but then I always did like turbulence on airplanes and roller coasters that go upside down and backwards - some people would say that I have guts of steal when it comes to the market - I just think I have a very long time horizon and I'm enjoying myself. So we'll see how we are doing with these two investments six months and two years down the road. [more]
An entry from my lonely path - yesterday I sold a bunch of BIDU and SBUX and today I woke up intending to have PNRA, PRAA, BH, REX, MCC, and MNST on my shopping list. But MNST has taken off and I didn't get the price I wanted on my BH shares, so I am waiting. [more]