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Bottom Fishing

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May 19, 2010 – Comments (5)

I had sold off part of a mutual fund position early last week and decided to put some of the money back to work.  Made a few small buys today.  Not sure if I'm bottom fishing or catching falling knives - time will tell.

RIG - Down nearly a third from recent highs.  PE of 6 on 2011 earnings estimates?  I think the market has overreacted a bit.

GHM - Down 5% today on no news.  Reports earnings on Friday - maybe someone knows something I don't, but I think this should trade closer to 20 than 16.

EBIX - Cheap growth stock that's been getting cheaper.  PE of 13, growing sales at 30%?  Is this a steal or am I missing something?

Missed the low points, but all are up slightly from my buy points.  Didn't load up on any of them, but looked like a good time to pick up a few shares from the sale bin.

All three are a little outside my normal comfort zone of stodgy, slow-growth dividend payers. 

Given my usual skill with timing, what this really means is you should short all of these and look to cover or reevaluate in about a week or two. :)

Anyone else doing anything other than diving for cover?

5 Comments – Post Your Own

#1) On May 19, 2010 at 9:13 PM, HarryCarysGhost (99.69) wrote:

Given my usual skill with timing, what this really means is you should short all of these and look to cover or reevaluate in about a week or two. :)

Lol, no I am not in duck and cover mode, I had a limit order on Visa at 75.

still have some dry powder if we see Dow 9500.

 

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#2) On May 19, 2010 at 9:17 PM, jed71 (34.95) wrote:

Buying puts on TLB, DTG and CCI. Seems a little safer to be on the sell side of the market right now. JMHO

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#3) On May 19, 2010 at 10:06 PM, SandmanKy (95.04) wrote:

I'd have to agree with jed71.  More downside in my opinion so I'm saving at this time.  (But since my timing abilities sound similar to yours.....it might workout in your favor)  Good Luck

 

 

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#4) On May 20, 2010 at 10:02 AM, rd80 (98.26) wrote:

Guess I should have waited at least one more day.

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#5) On May 30, 2010 at 10:17 PM, tomlongrpv (71.15) wrote:

Boy I cannot really figure it out but I am hoping (and thinking) that even if right now is not the bottom things will be up enough in 5 years that we all won't care.

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