Session of 02/23/2007

[David Randolph]

David, you are really cutting down the risk, and that is an amazing thing.  I am reading Stock Market Wizards, and while there were traders in it that made over 3 figure percentage returns, it seemed the author was most impressed by the trader who was making an average of 40% but with almost no risk.  And that makes sense, which is better, a few years of 100% plus returns that risk losing it all back in a bad year, or consistent 40% returns with almost no risk?

Great stuff you are teaching us here and in your premium updates, I love it!

I'm a teacher and a student at the same time, since I don't know many things that I need to know about the stock market.

I own that book too, some great stuff there (but not nearly as important as Reminiscences or Mastering FA).

The problem with all those great money managers is that they manage millions. Everybody is happy about a 20 - 30% return when managing millions. But, what about the little guy (in financial terms), what about starting with $15,000 and grow rich with it?

Hard, very hard, that's what this particular message board is all about. I want to prove that it is possible to go from a small account to a meaningful investment account, where 40% a year would be just fantastic.

About those 100% average annual returns. They're impossible to keep for the long term. It never happened in history, or else that man would without a doubt be the richest man in the world (unless he started with say, $100).

[ravenquork]

Hi David,

Thanks for the questions. I look at this board as a great learning opportunity, even if I might look foolish sometimes While researching your questions, I asked myself a few.
I am not answering yours yet but I did find this out:

Stockholders' equity
Common stocks, par value US$0.01 each,
Authorized – 100 million shares,
Issued –
18,942,871 shares as of September 30, 2006; 15,521,203 shares as
of December 31, 2005  
JADE uses issued number in it's eps calculations

[David Randolph]

ACY...nice move.

ACY has a lot of potential, because the market cap ($23 M) is very low and there wasn't any dilution over the years (profitable too).

Good luck

[txo066]

bought trmm at 3.35, and acy at 14.08 earlier.  I guess its one of those days

[David Randolph]

bought trmm at 3.35, and acy at 14.08 earlier.  I guess its one of those days

TRMM had a nice close. I hope it breaks out above that ascending triangle pattern.  My hands were weak, I lost.

Good luck and congrats on ACY, already a great trade

[txo066]

thanks David.  Had to dump ofi at 6.20.  couldn't stand the pain anymore( in at 6.40).  I'll buy again if it breaks out, but I'm worried that the business isn't sexy enough and this might be the beginning of a long slide back to the 3s.

[David Randolph]

thanks David.  Had to dump ofi at 6.20.  couldn't stand the pain anymore( in at 6.40).  I'll buy again if it breaks out, but I'm worried that the business isn't sexy enough and this might be the beginning of a long slide back to the 3s.

Ok, but sex has nothing to do with the value of a stock

OFI is a $96 M market cap company with projected annual sales of more than $250 M and I expect 2007 EPS of $0.67. That should put the stock between $10 and $15 for the year. We own it at the Main.

The Fire Portfolio caught a cold today, with a chicken sale on TRMM and ETLT.OB and PFSW down a bit on the day.

Have a great weekend