Glen Mead

Titan Machinery: Doesn't Anybody Look at Valuation?

HANS was a spectacular winner for more than a year. Shooting stars come down sometimes faster than they go up. There have been plenty of them. GROW comes to mind.

The idea of buying a stock and holding it to your grave seems to me to be counter productive. I mean, what's the point? When you have made a good profit on a stock and it looks like the main part of the move is over, why not step aside and look for better opportunities?

The few articles I read on Warren Buffet have pointed out that he buys and sells frequently. Sure, he has held on to some well known names, but he has bought and sold more than he bought and held. My point was that an IPO can have tremendous upward momentum in the first year in particular after they go public. Using a Graham/Dodd valuation method on IPOs is rediculous. There is too much volatility as investors and traders jockey for position in the new company.

Sorry if my tone was offensive. Taking a short position in a stock and then publishing a scathing criticism of it in a blog that will be picked up on the Yahoo! Finance web page for that stock seems a little self serving. Of course that is just my opinion.
Since there is no other news that I can discover on TITN that could have moved the share price I am presuming this is what did it.

Best Regards,

Glen