Listen to me. I sold FAS and APPF for a 2% and 5% profit. My cash is now 30%. I have a goal to reach 50%, so that I can cavort and sashay near the beach (no homo) for the balance of the summer without a care in the world.
That might sound like the words of a coward, but understand the market isn’t making a lot of sense now. Sure, its going up and that’s great — but it’s chaotic.
Plus, 75% of my investable money is fixed in the Quant strategy and doesn’t change with my emotions. That’ll be rebalanced on the first of every month, adhering to fundamental disciplines that have escaped many of you for a long time.
How about this for using fundies as a guide to long term gains. Using a fundamental screen in Exodus, I profiled what a loser and winner looked like the past year. The losers produced a loss of 31%, the winners +49%. Notice anything striking?
If you enjoy the content at iBankCoin, please follow us on TwitterProfile of a winner: PE 25x, earnings growth +28%, P/S 3x, Rev growth 11.9%, FCF $115m, Gross Margins +49%
Profile of a loser: PE: 16x, earnings growth -10%, P/S 1.5x, Rev growth +7%, FCF $163m, Gross margins +41%
I do hope FB goes the way of MySpace … I know it won’t but one can dream!
I probably shouldn’t hold TWTR into earnings, but…
The socials have all been deleting robots/fake accounts. Soon Yelp will get sued into oblivion, all it takes is one class action to demolish it.