Use access key #2 to skip to page content.

Red thumbs and drugs and bandwagon jumping.



July 09, 2007 – Comments (1)

Or jumping on to a red thumb bandwagon can be costly.

There I was, a beginning investor and an allstar. Riding high, reading pitches, and hearing the advice. "Buy what you know" the score leaders said. But I picked ENCY instead. Now I knew nothing about drug development. But I figured if their drug could help Europeans and Austrailians it could surely help Americans too. But the FDA said "no thelin for you" and I lose 80 points.

But I was determined to continue and eager to steal the best ideas from the top Fools. Our very top fool wrote a blog encouraging riches and points galore from the awesome "power of the red thumb" and I waited for the right time to pounce. And there it was, over valued alternative energy, and plummeting builders and mortgage companys. So I redthumbed the builders and closed out with some points and some accuracy. I had tasted the power of the red side. I struck again and redthumbed FSLR and TSL two overvalued solar companys. And I struck again as NFI and LEND came crashing down.

But they did not go bankrupt. "Don't follow the crowd" I had been warned "buy what you know". But I did not know banking and I did not let that stop me. So I followed the crowd and jumped on the bandwagon. Last one on I redthumbed them both right near their bottoms and they have both recovered, LEND is being bought out, and while there may still be hope for NFI to fail, for now I have lost 125 points each.

And today the solar twins of doom struck again. Now I know what solar energy is. I am a shameless tree hugging liberal who believes we all need solar to succeed. I wanted these companys to do great. But the most pointifull deity in the CAPS universe had shown me the dark red thumb side. The power was intoxicating, pulling me away from the green, downward, ever deeper toward the dark red thumbs. I was weak and could no longer resist. Surely I could gain power and points with a quick red thumb striking against PE's of 300 ond 145. But alas, they did not falter, for the good green energy of solar is strong. And they rose upward, slowly upward, until now on news of new contracts they leaped upward again determined it seems to maintain a P/E of 700 no matter how farfetched that may seem. And costing me 164 and 81 points each.

But my heart is black I will not weaken. I will keep the red thumb (at least on FSLR) and my battle will continue. Until FSLR is valued like an energy company, with a P/E of 15 or less, or until I am crushed down, back into the bottom ten CAPS players from where I had risen.

My ignorance of the true power of the dark red thumb side has cost me over 500 points.

In other news I have picked up 40 points redthumbing SWIM ! Hurray! SWIM ! On the green in one. I can do this. This game can be fun.

I'll tee off again tomorrow.


1 Comments – Post Your Own

#1) On July 10, 2007 at 4:26 AM, MakeItSeven (31.22) wrote:

Ha ha.... That's a good one.  How about red thumbing the realty now ?

I think you should give up on FSLR though.  Regular energy companies do not have expected 5-year growth rate of 65%.  That was before all the new contracts were announced. 

Report this comment

Featured Broker Partners