1. Any stock on long decline but with improving outlook will attract my attention. I bought into reasons explained by a post in Malaysia Finance blog(http://malaysiafinance.blogspot.com/2011/04/watch-this-stock-closely.html). More contracts and immediate contribution from acquisition. I like the fact of them of having a very structured acquisition process. Disciplined acquisition and smaller in size will increase the odds of success tremendously.
I'll keep this stock when their plans turn into results. If they don't, they're already beaten down, I can exit without a huge penalty. In other words, good bet on the upside but with limited downside. I may have abused Ben Gram or Warren Buffett's teaching but one thing that's matter to me: evaluate your downside(call it "abused margin of safety" if you will).
2. Why am I buying based on other people idea. It's because I'm lazy.
More serious reason. In a complex world, one person can't do all the things by herself/himself. In business, that's why people form strategic alliance. In the world of blog, though we don't know each other but we can read and study their ideas. If their idea is good, act on it. If it's not a good idea..............(don't complain since they do it for free).
3. Nasdaq composite index has broken out from their tough resistance. Not 2000 high but it's higher than 2007 high. Sooner or later, some people will catch the tech and dot.com fever. Soon tickers with yellow color will be on top volume leader board. So, I need some exposure in technology sector.
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