Selling too early has it’s advantages…. and disadvantages…
We recommended a position in FUQI at $5.20 (for the details about all our 2009 recommendations see here) a little under two months ago. We have to say here, we just couldn’t believe how cheap it was, so we really studied the SEC files, thinking there must be a catch. We spend quite a few days doing that, missing some of the upside already..
We adviced to take profits at exactly $10.4, a double in a matter of a couple of weeks. Basically we feared a correction in the markets, and more especially in Chinese stocks, as they had already rallied so strongly. Although nobody ever got any poorer by taking profits, it has no almost doubled again… We’re sorry, can’t beat them all..
Taking profits at what seemed premature at the time also can have it’s advantages, as in the case of eFuture. After a nice 60%+ rally in an even shorter time span, we adviced profit taking on technical grounds. It indeed fell back, but then we missed a seemingly golden opportunity to get back in at lower levels, but now it emerges the wheels have come off a bit, making us looking a bit less silly..
At the time we adviced profit taking in FUQI and EFUT, we thought we had a third one ready to jump, FEED. But we discussed it with a friend who vaguely remembered they had ‘accounting issues’.., and since we expected some kind of correction (or a pause at least) in the market rally, we never really got into this one. It was just $4 at that time.. Oh well..
Our latest advice really is kicking serious ass. We think the coast is clear to $15 at least, since we adviced it when it was at $8.5 (although we did advice to buy long-term options) at the end of last month, that would be quite a result. Today we’re having another great leap forward, an getting near to that $15 mark. Volume is really very high, so that’s a good sign…
Our unsung hero, but a nice steady climber..
Waiting for the inevitable explosion in the price…