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DigitalDisco (< 20)

Mixed Bag, One-Egg Investing

Recs

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September 02, 2009 – Comments (10) | RELATED TICKERS: BBY , GERN , FSLR

I did okay today.  DigitalDisco beat the market on Wednesday applied to both my own portfolio and my picks.  In my CAPS picks, I saw some things that I found odd.  BBY surged nearly 4% on no news of significance.  They are going to open stores in the UK, but are also slowing the rate at which they open stores.  Magic 8 ball saaaaaaaaaaaaaaaaaaaaaaays 4%.  Fine.

 

AKAM, my largest holding, gained back 1.67% today after the bloodbath yesterday.  I exaggerate a bit on bloodbath, but aside from C my portfolio lost at least 4% per equity on no news, which is bothersome.

 

Back on the CAPS side, FSLR posted a decent gain today which is also irritating.  The company was rightfully headed south as their position in the market continues to recede and management can't get a handle on it.  So far the "sure-fire" picks that I had in my head have all turned out sour, while GERN, a wildcard continues to post nice, consistent gains.  I think that their most recent success is based on the fact that the reason for the FDA hold was announced, and it falls toward the not-as-bad end of the spectrum (at least for now).

 

Lastly, a co-worker and I were discussing small-ball investment strategies today.  Specifically, how do you avoid putting all of your eggs in one basket when you only have one egg?  My total portfolio is valued at less than $700, and I knowingly invested in too many securities despite the fact that commissions actually come into consideration for me.  I did so because I saw large returns over the next 12-24 months that would easily offset my commission expenses, but we were debating if it was a good strategy or not.  I suggested that if he were to dive in that he should select two securities at most.  Anybody care to share their thoughts?

 

 

10 Comments – Post Your Own

#1) On September 02, 2009 at 11:40 PM, goldminingXpert (29.41) wrote:

Wait, you own both GERN and C?!?! I can't help someone that far gone! Good luck man, you need it!

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#2) On September 02, 2009 at 11:48 PM, jatt22 (48.54) wrote:

no  offence  but  as  u  stated  dat  ur  whole  portfolio  value  is  under 1k then  why  dont  u  try  some  bio  stocks  rather  these  big  name  stocks  ma  mean  wuts da  worst  can  happen  u  can  lost  half  of  it  but  think  if  u  hit  u  could  be  making  500 %  .  choice  is  urs  i  know  it  sounds  like   casino  play   but  i  m   just  assuming   even if worst  happen  u  can  still  say  wut ever  may  be  some  other  day  .

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#3) On September 03, 2009 at 12:06 AM, truthisntstupid (80.94) wrote:

I set out a couple years ago to create a source of extra income which I could add to and increase at my leisure.  A promo for a Motley Fool ad said:  "Could You Use A Little Extra Money?"  Well, I had never thought about it in exactly those words.  But the words made sense to me and galvanized me into launching a plan which will soon provide me with two things:  

!) The income which I would enjoy by working a second job, without the unpleasant part of actually working a second job.

2) The ability to keep increasing it more and more, faster and faster, as the extra income itself makes it easier and easier to save more money faster and faster.

I have created a dividend investing portfolio using direct stock purchase plans.  I'm never more than a week or two from my next dividend check.  I have six utilities (AEE, AEP, OKE, PGN. PNW, and SCG) PEP, WIN, and HOG.  This took some time.  I use direct stock purchase plans.  Some will allow me to make additional optional cash purchases for as small an amount as $25.  One allows a minimum optional cash purchase for $30.  The rest all have minimum additional optional cash purchases of $50.

It's just starting to get fun.  I only make a little less than $9 an hour and within a year or two more I'll really start to have a significant source of extra $$.   And maybe sooner because this is really FUN!

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#4) On September 03, 2009 at 12:40 AM, streetflame (29.90) wrote:

I would suggest buying a no-load, low-fee mutual fund, along with maybe one individual stock pick (after all, it is fun).  +50% rallies are not normal, and they have the effect of making iffy or bad decisions seem like good decisions.  For normal long-term market conditions, trading multiple stocks is going to cut very severely into your profits.

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#5) On September 03, 2009 at 12:42 AM, streetflame (29.90) wrote:

*Mutual fund or ETF

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#6) On September 03, 2009 at 1:57 AM, awallejr (85.56) wrote:

Not knowing your financial background, age, goals, ability to make future investments, it probably would be imprudent to give advice.  With that said, a $700 stake probably should be concentrated on 2 maybe 3 stocks tops.  And simply add to those positions monthly through rotation.  Might want to devote one of those picks to a spec play. lgdy is a cheap one I have in mind.  Soros owns a chunk of the company.  It is in the fertilizer business which has long term appeal.  And it sells for .60-.61 a share on average.

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#7) On September 03, 2009 at 11:59 AM, DigitalDisco (< 20) wrote:

Some responses:

 To #1 - I don't own GERN but I would like to.  I realize it's a gamble, but I believe in stem cell therapies.  All they have to do is show that they're successful and they can either develop therapies themselves or sell their company for whatever amount they so choose.

 To #2 - There's a sufficient level of gamble in my current holdings.

 To #3 - Very good idea, I'll have to look into it.

To #4 - I realize that it will cut into my profits, but the stocks that I chose are stocks that I realistically expect to gain 20-50% over the next 12-24 months.

To #5 - I'm looking for faster growth than most mutual funds could provide and I really don't know enough about ETFs to feel comfortable to invest.

To #6 - I'm a paycheck to paycheck person, 27 and engaged, looking to make make some large returns (more socially acceptable gambling), with limited current ability to make future investments (extra cash goes toward paying off debt right now but I set a tiny amount aside for investing).  I myself chose 4 stocks because 3 of them have quite a bit of potential (good and bad) in them and one I chose for a dividend.  I am interested in this LGDY but cannot find information on it through Ameritrade.  I'll have to keep scouring.

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#8) On September 03, 2009 at 1:00 PM, awallejr (85.56) wrote:

Check my recent blog on it.  It has a link to its website too.  It's a longterm hold.  I own it in real life.

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#9) On September 06, 2009 at 5:04 PM, truthisntstupid (80.94) wrote:

It just occured to me.  You said "small-ball investment strategies."   The article "Why You Shouldn't Listen To Jim Cramer"  is currently being run again.  Many MF articles are frequently given a break for a month or two and run again, though.  Now, if you go into the "archives",  and look up that article ("Why You Shouldn't Listen To Jim Cramer")  published on May 31, and read the comment thread following it, there's some of us "little"  folks exchanging ideas.  You might like it.

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#10) On September 06, 2009 at 5:08 PM, truthisntstupid (80.94) wrote:

I neglected to mention that there's about 80 comments there and what you're looking for would be from about the middle on towards the end.

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