For GT blog April 23, 2008
I have several trading rules - three of which relate to Timminco
1) Use stops - I use the ten-week low price channel or a true-range stop on the weekly
2) Never buy "concept" stocks - the storey usually end badly
3) Never buy IPO's
On the stop topic - stops - both the weekly true-range and the 10-week low sit at the $15 level - so don't even think of owning the stock under this important level
On the concept topic - the Barron's item Solar Sell of April 21, 2008 is the kiss of death
On the IPO topic - the new Sprott IPO may be impacted by the Timminco fiasco - in any event good IPO's are usually gobbled up by institutions - if small investors can get it - forget it!
Timminco - weeky bar - semi-log scale with stops
I have several trading rules - three of which relate to Timminco
1) Use stops - I use the ten-week low price channel or a true-range stop on the weekly
2) Never buy "concept" stocks - the storey usually end badly
3) Never buy IPO's
On the stop topic - stops - both the weekly true-range and the 10-week low sit at the $15 level - so don't even think of owning the stock under this important level
On the concept topic - the Barron's item Solar Sell of April 21, 2008 is the kiss of death
On the IPO topic - the new Sprott IPO may be impacted by the Timminco fiasco - in any event good IPO's are usually gobbled up by institutions - if small investors can get it - forget it!
Timminco - weeky bar - semi-log scale with stops
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3 comments:
By qualifying the ‘Barons Article’ as well researched, Bill, you have revealed you’re self as a fraud. The article was nothing more that a collection of lies wrapped in innuendo. Employed as a ‘bow shot’ by scheming short selling hedge fund traders; I am at a loss that you and many of your peers have cow towed to this maliciously structured article that simply suggests that Timminco is too good to be true, sour grapes?. No doubt that Timminco is a speculative play, but with over 200 metric tones to date of delivered product to satisfied customers, it becomes less speculative thus less volatile everyday, hence the timely short sell assault. Due diligence is more that just chart scouring; I implore you, as a published investment writer, to gather more.
Ok maybe 'fraud' is a bit strong; I recant as I've cooled off a bit. However I will maintain 'deceived'.
Dear “deceived”
Deceived by whom?
Deceived by the “experts” in the financial media who spin those “compelling stories” on speculative issues they bought at much lower prices?
Deceived by the deadly comments in the Barron’s item?
If the Barron’s item is defamatory where is the reaction from Timminco? Where is the threat of a lawsuit from the company or the major shareholders? Where is the demand for a retraction? I can tell you from experience – newspapers do not like defending lawsuits.
In any event one thing for sure – the market eventually gets it right – and if the stock breaks under $14 it will revert to a penny stock status – that is why we do our technical work.
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