Mark Gomes'  Instablog

Mark Gomes
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This profile, along with Mr. Gomes' investment methodology and article on "Tripling Your Money" (http://tinyurl.com/nx336wn) are required reading to understand how Mr. Gomes' researches and trades his picks. His updates are communicated via his Seeking Alpha Instablog/Articles/Comments and... More
My company:
Pipeline Data, LLC
My blog:
The Pipeline Data Newsletter
My book:
Faster Than Forty
  • Barron's Talks About Pixelworks... And Monkeys 2 comments
    Jun 21, 2014 1:42 PM | about stocks: PXLW

    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.

    Stocks: PXLW
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  • Mark Gomes
    , contributor
    Comments (2630) | Send Message
     
    Author’s reply » Have a great weekend everyone!
    21 Jun 2014, 01:42 PM Reply Like
  • gardesign
    , contributor
    Comments (210) | Send Message
     
    if one is inclined to write covered calls, you can buy PXLW at the current price, then sell Aug. 16 $7.50's for .95..... a 12.5% premium..
    30 Jun 2014, 07:54 PM Reply Like
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