by Travis Johnson, Stock Gumshoe | November 7, 2012 12:49 pm
This is premium content. To view this article (and to have full access to the rest of our articles), sign up. Already a member? Log in.
Source URL: https://www.stockgumshoe.com/2012/11/surprise-add-on-buy/
Copyright ©2024 Stock Gumshoe unless otherwise noted.
I added about 15% to my holdings today as well. I am one part greedy and one part chicken re: the 15% (I went into looking to add about 30% to my holdings). I would buy a bit more if the stock drops even further, and I hope that happens, but at the same time I am not buying more now because I allowing all the negative headlines to color my view on the stock (at least just a little). I guess much smarter people than me would be fooled as well if the stock is a bad buy at these levels considering the current valuations, balance sheet, dividends, growth and product lineup, etc, etc.
Travis, I am also a bit jealous of your purchase price on EXPD. I’ve been watching it ever since the large stock drop (Morningstar had it rated a 5 star stock around that time) , and I should have bought under $35. I’m hoping that gets into that territory again soon (I know it is close but I get hung up on arbitrary limits). By all counts it sounds like a great company and they are in a space that should only continue to grow over the long term.
Keep up the good work.
I was going to write something longer and pithier about Apple today, but Doug Kass said most of it better: http://blogs.wsj.com/marketbeat/2012/11/09/doug-kass-time-to-buy-apple-again/
Not that I was shorting Apple at $700 — I wasn’t, it seemed to be fairly priced then to me — but I agree that the market has now overly discounted Apple’s potential.
If you’re short-term-focused, just keep repeating to yourself: “They revamped their whole product line just in time for the holiday quarter “— that’s a big deal, and they’ve never done it before. I can’t promise that this quarter will be spectacular, but it will almost certainly be their best quarter ever and they should have plenty of product demand to grow earnings by at least 10% next year, which I think is the level that’s being priced in by the current share price.