— Why We Say Some
The major indices have reached or approached all-time highs.
The Jones Report is not about mutual funds or leaving it to money managers.
We like stock watching here.
What matters is how your stocks are doing.
Watching is one thing.
Decisions are another.
For active investors, decisions are constantly on the table.
Do you take some greens?
Do you hold?
Do you add?
There is no single answer.
Some positions get trimmed because the risk-reward has changed. Others are held because conviction remains strong.
Large holders, fund flows, sector rotation, short activity and changing sentiment can all affect how a stock trades.
The company may not have changed. The stock can still move.
Last year, when NVTS was trading in the single digits, the Jones Report looked into why Nvidia was interested in Navitas power chips. The power efficiency advantages of GaN and SiC semiconductors for future data centers were highlighted in earlier reports.
Eventually, the market caught on and the share price responded.
After a run, investors start looking harder at the numbers.
What is the earnings outlook?
That does not mean the story is broken.
It does mean expectations have risen.
The market does not always agree that a stock has gone too far.
Palantir is one example.
Many questioned the valuation. The stock continued higher.
Large institutions face the same basic question.
Do they Buy, Sell or Hold?
Or even lend their shares out to short sellers?
Some maintain conviction and stay on the buy side.
Others decide to take gains and wait.
Nobody knows the future.
That is why we say some.
Protecting your own interests and taking a gain in some is often the right move
It can also help build dry powder for whatever comes next.
Holding because conviction remains strong is often the right move.
The challenge is knowing the difference.
Conviction can come from performance.
A stock that continues to execute, grow and deliver results can justify continuing to hold some.
Recent performance by VVX is one example. The stock has had a strong run, yet continuing to hold some can still make sense based on execution and results.
Conviction holdings can also be different.
Take spec biotech stock ONCY.
Readers may recall the Jones Report's "Trinity Approach" discussion.
Performance is not always measured by earnings.
In biotech, performance can be measured by clinical results, regulatory progress and the steps being taken toward FDA approval.
After looking into the company's approach to building immunity while combining Pelareorep with existing cancer drugs, the science remains intriguing.
Clinical progress, new data releases, FDA interactions and the path toward potential approval can all be watched along the way.
It's a "some" position based on the possibility that something important develops.
And, if it does in biotech?
For the winner, some can be enough.
And some can't hurt too much.
As always, stay watchful.
Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
ALL in my humble opinion, scroll down and read more. This site does NOT make Buy / Sell recommendations.
