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Varchild2008 (84.54)

Shh! QUIET versus LOUD Stocks: Possible 'When to Sell' strategy



May 31, 2008 – Comments (0)

I'm still new so I never give myself any real credit for anything until I at least have a full year of investing under my belt.  I've started investing this year near the beginning of March.  That gives me nearly 4 months with 8 more months to go.


QUIET versus LOUD stocks and what is better?  How does that make a difference?

STOCK A:    Doesn't issue press releases except for Earnings Reports and occasional events.

STOCK B:    Schedules a bazzilion events issuing press releases on all of them, issues press releases on seemingly insignificant news as well as very significant news.

If STOCK A and STOCK B   go up a huge amount on a spike...

STOCK A goes up because of its earnings report and the C.E.O's outlook on the future of the company's earnings...

STOCK B goes up because of the latest press release it issued....

Which is more genuine?  Which stock has gone up on speculation much more so than the other?

Obviously Stock that skyrockets because of the press release news is heavily speculated, much more so than the other Stock whose share price went up because of an excellent earnings report.

So.... To keep it short...

Sell Sell Sell Sell Sell  off a Spike from a Press Release.

Hold..Hold..Hold...Hold...  off a Spike from an Earnings Report.

That leaves me with SWTX  (Southwall Technologies) that went up a lot off of a press release rather than an earnings report. 

Normally, I would defintely sell off at least 1/4th of my total holdings of SWTX...maybe 1/2 even.
But, I'm not going to this time.

My stupidity of holding my shares when I should sell is smart if my homework on the company is right and I feel I can expect a much better share price if I just wait until 2009 or 2010 even.

But... Boy will I be kicking myself for not hitting the register if something bad happens to this company where it can't sell its FILM technology inspite of the gaining a new distributor in China. :-(

Ultimately...  You have to ask yourself which stocks you'd sell shares off of PRESS RELEASES and which stocks you would sell some shares off of EARNINGS REPORTS.  Stick to that plan and you should do well.

P.S.  As I am typing this.. I just may sell some shares of SWTX on the crazy 22% spike.

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