There are NO 'Happy Endings' in the Stock Market!

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  • on August 1st, 2008

Women love ‘Happy Endings’. Guys looooove ‘Happy Endings’ (at least talking about them :) ). You just won’t get many in the stock market. Too many guys in line ahead of you and your ‘Common’ shares.

Most stocks trends end because of SCENARIO TWO I outline in this May 2007 post on Crocs (CROX). It’s one of my favorites.

When you buy common stocks, based on your, mine or Cramer’s research or missives, we won’t be there to hold your hand when the stock immediately turns south. It’s why I try and temper my excitement for stocks on this blog, especially in horrid markets like this. I love stocks and can’t help talking about them, but keep more and more of it to Twitter.

The title of this blog is not buy, buy more and never sell. ‘Getting Off’ is the most important part of any investing strategy.

In one of our first Wallstrip’s (November, 2006), I was cycnical of Whole Foods (WFMI) (than in the 40′s). I tried to explain early on in our show about Hot stocks in Hot trends, that Trends End! I thought Whole Foods, despite being a great company, was dealing with a broken stock.

Who cared what the reasons were. The average investor will never know the reasons until it’s too late and the Company is ‘LOOKING FOR A FRESH IMAGE ‘ . OY! It’s just not that complicated if you heed to PRICE!

My friend Fred wrote something the other day:

Web services are like cars or soft drinks. There’s room for many of them to coexist peacefully. You might like to drive a Honda, drink Coke, and use AIM to talk to your friends. I might like to drive a Chevy, drink Pepsi, and use Twitter to talk to my friends.

Yes, like cars and soft drinks, web services compete with each other for customers/users. But there are almost a billion internet users globally these days. And you can build a very nice business serving millions or ideally tens of millions of users.

So I’d like to suggest that we stop focusing on who is going to kill whom and instead think about market share, business model, sustainability, and profitability which are the measures that people in most businesses tend to focus on.

He’s right, especially when you are looking to back start-ups. Unfortunately, for the average common stock investor, this thinking will get you broke and fast. Again, there are just too many hands in the pot ahead of you…the lowly ‘common’ shareholder.

So wise up, take some responsibility and learn to SELL. It’s not a game and no matter how small you think your portfolio is, it’s not and should never be looked at as your gambling money. You will have more fun and have way more ‘Happy Endings’ gambling in Vegas!

PS – I was in a Circle K buying some ‘Tiger’ Gatorade and escaping the 115 degree heat for a minute and I saw a spinning rack full of CROCS (CROX) knock-offs for $4.99. This was an in your face, ‘f%#ck you your are dead and won’t bother even suing me’, knockoff. I pulled up a chart remembering the last time I looked it was $10 a few months back (down from $90). Let’s just call $10…’the glory days’ :) .

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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