David M Gordon

http://eutrapelia.blogspot.com/

5 Comments

    • Apple Will Iron out the Wrinkles -- or the Irony [view article]
      Wow, these are all great comments. Thank you, All!

      In reply to Constable Odo, I add the following remarks:
      Stocks build three readily discernible trends in all periodicities -- up, down, and sideways. (So tell me something I don't know, David!) When a stock trades sideways for ~9 months, as is the situation for Apple/AAPL, there usually is a good reason for it.

      1) You could view the chart's technicals and claim there is a real war of wills between the bulls and bears. Which the bulls appear to be winning. Why? Because the lows are increasingly higher, and the highs kindasorta flattish. Consider the chart either as a symmetrical or ascending triangle. The breakout from both patterns, in either direction, historically proves powerful. Both patterns, though, typically prove to be a continuation pattern of the previous trend.

      Or

      2) The previous up trend was sufficiently powerful that the "P" grew to fast, and far in advance of the "E". So the stock hesitates, while the "E" catches up to the "P". Sometimes "P" declines, sometimes "T" (time) elapses, but the net effect is a much smaller PE Ratio.

      And then after sufficient time and a low enough PE AND if the earnings continue to grow, and faster than Wall Street analysts guess, then the stock can resume its former upward march. Your typical growth stock story.

      The analysis of stocks' trends is the province of chart reading, which is a subset of technical analysis. Combine a solid fundamental story with tremendously bullish technicals, and sail with the wind at your back.

      My comments here are obvious truisms, I know (and I certainly to not mean to offend you), but as with everything, consistently successful results from investing is more difficult in practice than in abstract.

      But that is what makes investing so much fun, as well as profitable!       Aug 25 12:42 PM
    • Johnson & Johnson: The Type of Growth Stock I Favor [view article]
      mollytjm,

      I wonder whether Apple deserves the credit you grant it.

      The company -- and certainly the stock -- do not qualify as one that would interest Buffett on a whole number of levels, not solely because it is a technology company. Too, the company makes a number of mis-steps of late, and their secretive ways have inhibited the company from apologizing for anything... until this mobilme fiasco spiraled completely out of control. Unfortunately, other disconcerting problems begin to crop up; the silver lining is that they arise due to the company's torrid pace of growth.       Aug 20 12:56 AM
    • Johnson & Johnson: The Type of Growth Stock I Favor [view article]
      David,

      You are correct; I offered no comments in this post re Intuitive Surgical/ISRG. Wholly my error. Although my blog is littered with posts re the company and the stock, I keep forgetting that my posts that Seeking Alpha aggregates reach many readers unfamilar with my previous comments. I will figure out how to correct this issue.

      btw, congratulations on a very nice and informative (and informed!) blog of your own.

      Best wishes,       Aug 20 12:51 AM
    • Embracing the Market's Volatility: My Investment Grocery List [view article]
      Good morning, John,

      Excellent questions; thank you! In fact, each reminds me that I must always address the newer readers who lack familiarity with my earlier posts.

      Yes, 30+ stocks replicates an index, and, yes, there is no "edge" to be had there. However, the list is for my readers who have their own investment objectives and risk tolerances: big cap or small cap, growth or value, high price or low price, trending higher or trending lower, and across the wide spectrum of sectors and groups. So I make the list as complete as possible and thus allow the readers to make their own decisions based on which opportunities resonate for them. I myself limit my portfolio's holdings to 9 names -- this number has proved optimal in study after study -- once long 9 positions, a new position must be arguably compelling as it must displace one already long in my portfolio.

      I am not one to shower disrespect on Warren Buffett: he is smarter than me and has more money as well! Nor do I intend to sound dismissive of hedging by terming it a ploy. No, I am a plain vanilla investor; go long (only), make money, and when the market is in a mood not to cooperate, take my money and seek balance in my life. Tthat balance expresses itself via my relationships with other people, my incessant travels, and by my abiding interest in photography. At those moments, I have nary a care in the world, and find that I pursue the ultimate hedging "ploy" -- living life.

      Thank you again,
      David       Feb 20 08:39 AM
    • Expecting a Big Move in Isis Pharma [view article]
      Thank you for your comments, Jon Jon.

      The mention of "301012" in fact is made by <b>The Medical Technology Stock Letter</b>, not me. I added his thoughts in the comments area of my blog for added depth of understanding.

      It seems <i>you</i> know this stuff very well indeed; My regular readers would appreciate it were you to add your comments -- and any other remarks -- as a reply on my blog. Certainly, I would!

      Best wishes,
      David       Jan 11 11:12 AM
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