Man Alive! One AwesomeTrack Record! & Some Tips

 Albies Take: 

Heres is a comment Bryan posted in response to the last Post:

LULU, COH Stocks Near Bottom: Squeezing the Last Drop out of This Lemon, Coach is in the Bag.

 Man alive Bryan! You sure have one awesome track record!  I was really impressed and wanted to share your post with everyone. You also have some great advice and answers to my observations and questions. Thanks for sharing Bryan. Here is your comment:

January 24, 2013 at 4:09 PM

Bought more LULU today at 66.60 and sold at 67.44 for about a 1.25 % profit. Despite my being glad to be out of LULU because of the valuation in relation to the market being at or near a top, I couldn't resist buying more as it dipped back down. I was hoping it would pop at the end of the day which it did!

My track record in the last few months is now:

40 successful trades and 1 loss

In response to Albie's comment:

In terms of being a value investor, I don't consider myself one. I generally don't buy companies that would susceptible to value traps. I buy companies that are rapid growers, which happen to trade at reasonable valuations and have just been knocked down because of bad news of some kind. True Value Investors diversify widely and buy stocks trading for under book value (you could buy the whole company for less than it's liquidation value). These are generally broken companies that may have one last puff left in them. I only invest in companies that are growers that are going to come back quickly from a knock down. That's the way to avoid value traps. Of course, you have to evaluate the company and make sure the bad news doesn't permanently affect the fundamentals of the company. As Buffett says: "It's better to buy a wonderful company at a fair price than a fair company at a wonderful price". Take care. Stay posted for my next trade!

~Bryan




Thanks Bryan for sharing some of your tips with us, your awesome track record and some history of which stocks you've been in recently.

~Albie


PS: For anyone just joining us here and who is new to stocks or new to this kind of investing, I highly recommend checking out this video by Warren Buffet. Its Very, Very Good!

You H-A-V-E To See THIS!!!(Part 1)

Click On Pic For More Info

LULU, COH Stocks Near Bottom: Squeezing the Last Drop out of This Lemon, Coach is in the Bag.

 Albie's Take: 

You know Bryan, as a value investor, there is a huge chance of finding yourself caught in a value trap when buying Stocks near the bottom. But it seems you have really tapped into a way to buy very close near the bottom and catch and profit on the stock on its way up - even if it is as you say aiming to 'hit a single rather than a home run'. Thanks for taking the time to share a little about your success trading with Lulu and COH lately. I've been watching your 'single hits' and you've been getting them in regularly:

Bryan's Take:

Hi guys! Ok...so it's been a doozy of ride since yesterday.
 

LULU: Just sold it at a 1% gain even though it will probably go up more in the coming days. LULU's valuation of over a 40 P/E is a bit scary and not something I wanted be in long, especially since we are flirting with record highs in all the major indices. If the markets were to go down dramatically all of a sudden the high growth stocks like LULU always crash the most.....(if I would have known this five years ago I would be a Millionaire already). Even though the charts say it's going up more I'm more about hitting singles at this point than hitting home runs. 

COH: Let me just breathe a sigh of relief on this one. Phew!!! I figured that 51.36 had to be at or near a bottom yesterday after it had fallen almost 16%. It flat lined all day long until Cramer opened his big mouth about an hour before the close and sent the stock down more with his negative outloook. As I told Jeff, Cramer admits to being right about 60% of the time. Since I started tracking I have been right over 98% of the time. Therefore, I respectfully disagree with Cramer. The trading as of today in COH strongly suggest that COH is at or near a bottom. Volume is much lower than yesterday so that tells me the majority of people selling are done. I believe I will get my 2% + out of this stock in the coming days unless the market turns down.

 Here are some reasons I am bullish on COH:

1. At or near a bottom now

2. 72% gross profit margins were not affected, despite missing Wall Street's expectations

3. 40% growth in China

4. Dividend is now at 2% which should provide some stability

5. All their bags over $400 are selling exceptionally well

6. No debt....may I repeat that? No debt

7. They didn't do any discounting which means they haven't lost their cachet

8. Trading at 14 times earnings....a very reasonable valuation for a wonderful company

Doesn't like the "tired and old" company Cramer describes does it? I hope that it helps you guys for me to share my thoughts. You have to develop your own theses. As Warren Buffett says: "You're neither right nor wrong because other people agree with you. You're right because your facts are right and your reasoning is right—and that's the only thing that makes you right. And if your facts and reasoning are right, you don't have to worry about anybody else."

Have a great day everyone! 

Bryan 


 Albie's Take: 

Thanks for Sharing with us Bryan. I've been inspired by your 'batting average' for the last couple years and think that it may be a great help to others to share your successes nailing these GREAT stocks as they fall to near bottom prices. 

~Albie