Hello, My Name is....and I make Investing Mistakes
I think one of the hardest things to do is admit that 'you got it wrong'. Well, I am trying to get better at this and recently, I got it real wrong and this isn't the first time....probably not the last either.
After spending years reading about the markets and doing fairly well as a whole, I still look back on my mistakes. The first stock I ever bought was HMX because I liked their clothes. I sold it for a loss, but the company went bankrupt. This was a great lesson because it took much pain to sell at a loss, but I needed to learn and feel that pain. My second investment was VPHM a few years ago. I did hours upon hours of diligence and 'figured' out the story. So I thought I was in a $9 stock that was going $30-$40. FDA setback droped the stock to $5 and I sold at $6 for another nice loss. The stock ultimately went to $30, but my second lesson was timing is almost as important as diligence. This was my second lesson. I made back both of these losses when Natural Gas was trading under $2 and I went into UNT and road it back to the black.
All my stock picks are my 'gambling' money, the bulk of my investment dollars are in VWINX, DODIX, VWELX. These are solid, low cost funds that reinvest all my money in tax shelter accounts like an IRA/401k.
However, I am back in the game and recently took a nice loss with APP. I thought the catalyst was going to be the refinancing of the debt and the increasing sales would drive the stock much higher. So far, I have been very wrong and sold the stock after reading about the CEO being back to his similar ways. I investment the rest of the money into ABMD.
I think ABMD is a hated stock on the street right now, but the story is too good to pass up. Medical devices have turned into a very boring sector, but ABMD's Impella is a star. The company is debt free, profitable and growing leaps and bounds. The FDA just made them refile their 510k into a PMA, but they can still sell and market their device how they please. The data is remarkable over balloon pumps. The wind is truly at the back of ABMD and a larger player can't ignore this technology forever (esp considering that developing a similar product and getting a PMA would take at least 3-5 years). I know the company faces some near term headwinds like the device tax and this FDA PMA, but in 12-24 months when sales and profits are at new highs and the dark clouds have past, someone will want to buy this company like a BSX or JNJ for $30-$40 a share depending on how well profitability grows.