Investments!

[Lugnut]

You got lucky. It's new, it got investor attention, and so it took off. I can't find much info on the company. I did find that sharebuilder only tracks it back about a year and yahoo says that the company was founded in 2005.

I haven't looked into it much, but at a quick glance, a 43.xx:1 P/E ratio scares the crap out of me. Most blue chips, at least in the sectors that interest me, are between 10:1 and 20:1

I originally bought it as a long term hold. It was nowhere near 43 when I picked it up. And the PEG ratio was AWESOME. Now it's siting at 1.23.

I am seriously contemplating jumping out of it now and moving the money to something more predictable. I've made a stupid amount in just two months. Would hate to lose it because I was greedy or just plain dumb.

 

[czygvtwkr]

You got lucky. It's new, it got investor attention, and so it took off. I can't find much info on the company. I did find that sharebuilder only tracks it back about a year and yahoo says that the company was founded in 2005.

I haven't looked into it much, but at a quick glance, a 43.xx:1 P/E ratio scares the crap out of me. Most established companies, at least in the sectors that interest me, are between 10:1 and 20:1

It depends on how fast revenue and profits are growing. If the company has a growth rate of 50% the high P/E is definately worth the premium.

ROA or return on assets is a more useful number to compare stock prices with. Price to Book is another good one, the book value is what the company could earn if it went under and sold its assets (cars trucks realestate etc).

 

[itsbob]

I'm stumped. My top pick (ANW) is now up 77% from when I bought just over 2 months ago. Hey fantastic, I've made an assload of money, but I would really like to know **WHY** so I can duplicate the effort!

The fundamentals have not changed over the preceding two months. The only thing I can attribute the sudden rise to is a an article written last month. One article caused this kind of jump?!

Can some of you more savvy guys look at ANW and see if you can find anything that would explain the sudden pop?

I don;'t know what casued it but of the people I know that do the stockmarket they usually set sell points and buy points.. They invest in a stock and instead of basing it on time, they base it on gain/loss as to when to sell, and re-invest in a different stock.

Personally don't know what I'd do, but I'd say you are kicking ass..

 

[Chain729]

It depends on how fast revenue and profits are growing. If the company has a growth rate of 50% the high P/E is definately worth the premium.

ROA or return on assets is a more useful number to compare stock prices with. Price to Book is another good one, the book value is what the company could earn if it went under and sold its assets (cars trucks realestate etc).

True most of the time; I just said at first glance. Of course, with a company less than 2 years old, most of the standard valuation stuff doesn't mean jack.

It's also in a niche market that I'm not familiar with.

 

[Chain729]

I don;'t know what casued it but of the people I know that do the stockmarket they usually set sell points and buy points.. They invest in a stock and instead of basing it on time, they base it on gain/loss as to when to sell, and re-invest in a different stock.

Personally don't know what I'd do, but I'd say you are kicking ass..

 

[czygvtwkr]

The first thing you need to ask yourself was it a trade based on a certian piece of information or was it an investment?

If it was a trade, what is the catalyst that you bought it for. An example would be a small phama with a new drug pending approval. You think the drug is going to be approved and there are no other drugs competing. If the drug is approved after the approval you sell, if the drug is not approved you sell even if the stock goes down, you will probably loose less than if you hang on. Most people would wait it out and hope the price eventually raises but in this time how much could you have made on that money elsewhere?

Love him or hate him Jim Cramer wrote a very good book called Real Money, Sane Investing in an Insane world that I highly recomend to anyone who is even thinking about buying a stock.

 

[Lugnut]

The first thing you need to ask yourself was it a trade based on a certian piece of information or was it an investment?

If it was a trade, what is the catalyst that you bought it for. An example would be a small phama with a new drug pending approval. You think the drug is going to be approved and there are no other drugs competing. If the drug is approved after the approval you sell, if the drug is not approved you sell even if the stock goes down, you will probably loose less than if you hang on. Most people would wait it out and hope the price eventually raises but in this time how much could you have made on that money elsewhere?

Love him or hate him Jim Cramer wrote a very good book called Real Money, Sane Investing in an Insane world that I highly recomend to anyone who is even thinking about buying a stock.

I bought it as an investment. I spent 2 months reading up on the shipping industry, industry guidelines, ANW, and ANW's competition before deciding to buy. There are VERY few places I could have made an 80% gain in two months. So having my money in ANW has been a GOOD thing. HOWEVER, I was NOT expecting ANW to shoot up until the new guidelines came online and ANW's competition was pushed to the wayside. I'm uncomfortable right now because I don't have confidence that the current level is steady. I think it's a spike based on knee jerk purchases caused by the article and recent analyst recommendations. IF I'm right, I can jump out now take a 80% gain, wait for the correction, and jump back in for the long term (original plan) If I'm wrong, I jump out now, take an 80% gain, and miss the next X% gain...

You see my problem, yes?

 

[Lugnut]

I rent!

Instead of paying a $7,000 house payment, I rented the same house for $2,500. How's $4,500 per month of savings for a return?

Are you throwing that $4500 a month into your piggy bank (IRA, stocks, bonds, whatever?) If not...

Incidentally, the combined mortgages on BOTH of the homes I OWN come to less than $2500. But you go girl, you're doing fine!

 

[czygvtwkr]

You see my problem, yes?

Yes I do, I would try selling half.

 

[Chain729]

Yes I do, I would try selling half.

That would appear to be the best cross of the two. Of course, without knowing much about the company, everything sounds like a good idea

Lug, happens all the time. The truth is, you don't ever know what's going to happen. You just have to take a look at what ya got and try to strike the best balance between "acceptable risk" and "profitable." Those terms are in quotes because they're defined differently for everybody.

 

[JEB]

Lug,
You bought it for a reason. Or several reasons.
Do they still hold up? Would you buy it today?
As a variation on Czy's advice, get your investment back and play with the house's money.

 

[Lugnut]

Lug,
You bought it for a reason. Or several reasons.
Do they still hold up? Would you buy it today?
As a variation on Czy's advice, get your investment back and play with the house's money.

That's true. To answer your questions... Yes, and yes.

I've decided to hold firm.

 

[JEB]

Good for you.
I'm doing the same with VMW.
Knock on wood.