(This is not Turtle Trader or Trend Following blog. All stock and strategy mentioned in this blog do not represent buy or sell. This is my digital diary to express my thoughts and opinions about the world of investing. Ultimately, you will be responsible for your own decision. Please consult your investment adviser before taking any investment position).
Thursday, June 5, 2008
Small Cap - a big dissapointment?
Wow! 49% of the small caps missed estimates? Is this the sign of bad things to come -- lead to a huge sell-off? This may put off a lot of retail investors for a while. I normally like to hear story of companies missing estimate because of potential mis-pricing. I normally will be very happy even I can find 1 or 2 mis-pricing stocks out of hundreds of them. Those mis-price by almost 50-60% will be a good bet to compensate for opportunity cost tied up to wait for the market to recognize.
I also like fallen angels of growth stocks when they missed the high growth rate. Disappointed investors will send those stocks down to eternal hell. Again, mis-pricing of 60-70% will be a good bet.
Hi!
ReplyDeleteI have added your link to my website.
With best wishes
Boon