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Mark Gomes
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With over 20 years of professional experience, Mark Gomes is among the world's most experienced technology stock analysts. During his time as a contributor to Seeking Alpha, over 50% of his official picks were either acquired or tripled in value. Currently, Mr. Gomes is the CEO of Pipeline Data,... More
My company:
PTT Research & Pipeline Data, LLC
My blog:
Poised To Triple
My book:
Faster Than Forty
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  • 58 Cognitive Biases That Screw Up Everything We Do

    This is a great read for investors who wish to take their game to another level. In my opinion, understanding (and finding ways to overcome) your psychological weaknesses is one of the Top 3 things you can do to increase your future net worth.

    http://www.businessinsider.com/cognitive-biases-2014-6

    Jun 25 11:40 AM | Link | 8 Comments
  • Barron's Talks About Pixelworks... And Monkeys

    After the market closed on Friday, I noticed that PXLW was featured in Barron's.

    Barron's also featured a piece about monkeys picking stocks better than "professional" managers.

    It sounds outlandish, but there are several reasons why:

    1. Most fund managers are trying to manage too much money with too few resources. This leads to mediocre stock-picking discipline.

    2. They lean on Wall Street research too much. Benjamin Graham explained why Wall Street research is no better than throwing darts. See our Methodology for Ben on video talking about this.

    3. The easiest way to not lose clients is to not take chances. So, most of America's money is managed in a way that is meant to simply match the stock market's returns. They take the safe money instead of doing what they were trained to do (mainly because Main Street investors scurry at the first sign of losses, even if the long-term track record shows big consistent gains).

    4. Add in the other duties the portfolio managers need to perform (regulatory, accounting, marketing, sales, etc) and it's easy to understand how monkeys could do just as well.

    Yet another reason why I started PTT Research.

    Take the power back into your own hands.

    Disclosure: The author is long PXLW.

    Tags: PXLW
    Jun 21 1:42 PM | Link | 2 Comments
  • Lose 33% In 9 Months To Make 1,000% In 15?

    Often times, investors will buy one of my stock recommendations and immediately start losing money on it.

    This is actually very normal. In fact, the odds suggests that 50% of my picks will drop below my initiation price. The key is having confidence in the longer-term (1 to 3 years) outlook for the company. This is because it often takes several months or quarters for the rest of the investing community to realize what my research tells me today.

    If my industry-expert contacts tell me that they see demand increasing for particular company, it might still take six or nine months before that increased demand converts into recognizable revenue. And even then, the company has to report that revenue to investors, which doesn't take place until several weeks after a quarter ends.

    This is a blessing and a curse. It's a blessing because we get to buy the stock long before anybody sees that the company is doing well. However, it can be a curse because the stock might drop for several months because nobody knows it should be going up. Nobody knows the company has started to do well!

    My most successful investment ever was a perfect example of this. As you can see from the chart below, the stock dropped from $2.00 to $1.40 (a 30% loss) in over the course of a few months after I bought it. That was very frustrating!

    However, the next 15 months were electric. The stock basically went straight up to $30 from that point, giving me and my Wall Street customers one of our biggest gains ever (we closed our positions around $20).

    (click to enlarge)

    Tags: ALSWF
    Jun 20 4:12 PM | Link | 15 Comments
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