Stock Talk
Watching your stock picks on a daily basis can be fun at times when you see that the market agrees with your foresight. And when the market takes your picks down, it can be a wake up call or an opportunity. Either way, it can involve a decision.
I will add that a decision to do nothing is still a decision. Traders have a saying, one who calls them self "a long" in a stock is often "a good trade gone bad". This is why I always try to temper my enthusiasm on a particular stock by saying "some", not too much. In theory, it allows one to add to a good stock and "buy the dips".
Theory and practice are two completely different things. Sometimes enthusiasm causes us to "buy too much" and then the market brings the sp down, like short sellers and/ or the company just misses the goal and the stock becomes less buy worthy and more sell worthy. As events unfold and companies perform or don't, you get "a feel" that can lead to a gut feeling of "it's gonna be awhile".
At such times, "hanging in there" may not be the best thing. A closer look at the portfolio and balancing losers out to preserve cash or "dry powder" may be warranted.
For example, take Yamana Gold. Recent performance seems lackluster. I looked at some of the dig findings. A 3g per ton is a minimum benchmark I use to figure if a company has a profitable mine. Actually 3g/ton and how deep it is. I just gave the drill findings a precursury look, but while they have mine-able finds , making big enough earnings to impress the market past the $6 per share mark seems a little tough. That is unless gold skyrockets. Some say it may. I don't know, so I am trimming some shares of Yamana.
In other stocks, the C19 vaccine space has market hoopla on Pfizer and moderna' s mRNA vaccines being delivered to the UK and likely soon in the US after FDA approval. This kind of keeps the pressure on the companies that are months off from possibly delivering a viable vaccine, new antibody or test. I have already posted about how Inovio got temporarily FDA delayed from their original goal. The FDA and the DOD seem to want verification that the new models of Cellectra devices will give the same punch as the original model. The unexpected FDA delay at the end of September seriously damaged Inovio's prospects to deliver a C19 vaccine in a timely way. Add that the market is clamoring about Pfizer and moderna and other big Pharma companies, it gives a bad feel about Inovio near-term sp with the many short sellers sensing a period of weakness. The longs look for "news" to break the current standoff. But "the market" is more "now oriented". Inovio has longer term pipeline and prospects that keep me in "some".
The similar dynamic is happening with Sorrento. The recent $34 million funding by darpa is getting to be old news with prolonged lack of reports on how actual progress is being made on several projects. I got into Sorrento on the basis of the reports that their antibody shots would gain traction. Surely, the government was recently convinced enough to fund $34 M. The thing about Sorrento's antibodies is that they are intended to treat people after becoming C19 infected. There are OVER 100,000 C19 patients in US hospitals! But what is taking so damn long? There are two companies that already have antibody treatments out there. I am holding some SRNE but my patience on lack of results makes me wonder why.
So where does this all leave me with a feeling?
obe - " overcome by events" is an acronym that comes to mind.
When this feeling comes, sometimes a decision is to trim shares back to "some" and preserve dry powder, and take another look when not feeling so obe by "the market". having just "some" of a company that you believe is a good long term position but under recognized makes it easier to take if the company continues to "under deliver" according to market standards. Also sometimes it is a humbling thing to take a step back and look at the position from the market view. The name of the game is "more greens than reds" at the end of time you have given the company to perform. and more reds than greens makes one feel like its "just another lousy day" but "we keep on keepin' on" and live to "fight another day".
have enough sayings? yea ok.
_
ALL in my humble opinion, scroll down and read more..This site does NOT make Buy / Sell recommendations.
___
