Readers and those who follow the ROTY series have probably noticed that the Contenders List continues to grow and we have added several new stocks/ideas waiting in the wings. Soon I will start taking some off, leaving only those with near term catalysts.
It's vitally important to have great ideas/stocks waiting in the wings to be able to replace those that have either worked out well or losers that we cut. There are many great stories in the Contenders List, and so I will have to choose the 2 best to replace holdings that we sell. Best in terms of:
Near term catalysts to profit on
Current price action/strength is what we are looking for while not having stocks run up without us
Likewise a couple ROTY ideas could easily get bought out and I can think of one or two that could always go against us in the near term. If that happens, we still need to be ready to move on, staying unemotional.
Equally as important, if I see two stocks of more or less equal conviction, one in the ROTY model account and one in Contenders List, but the one on the Contenders List is starting to show strong price action/relative strength while the stock in the first account is showing little institutional interest/buying, I will switch them out at a moment´s notice if the trend continues. Let the market dictate to you which stocks will be profitable- stay humble and don´t get married to your stocks.
Stick to your thesis and plan, but be flexible enough to make changes as needed!
Hope that the above, my ramblings, in the end made sense.
For new followers, here's how best to stay connected with me:
- I try to publish 2 to 8 articles on Seeking Alpha each week, just depending on what's coming up in my scans and never sacrificing quality. Typically I have the reverse problem, too many interesting stocks on my watchlist that I never can seem to get around to!
- I write a weekend blog post of interest on Seeking Alpha and introduce a Catalyst Stock of the Week on my personal blog (also have some guidelinesposted that have helped me in the stock market in case you find them helpful).
- Daily on Twitter I tend to post a few analyst upgrades and other news of interest (Sundays can be off topic while during the week is 100% market focused)
- Facebook Group where I post links to Runner of the Year and other interesting articles for those who use that medium.