StockFetcher Forums · General Discussion · Build a Lotto portfolio ?<< >>Post Follow-up
conyeuchua
83 posts
msg #69234
Ignore conyeuchua
11/16/2008 1:28:15 AM

Slope of Hope is an active and fairly reliable blog by Tim Knight, founder of ProphetCharts. Tim has been making profits with his bearish views. Today (Nov 15, 2008), he is suggesting stocks are now cheap. He bought LVS on Nov 13.

One of his readers "thefunneloflove" suggested the following:


My simple logic: There are A LOT of stocks that are great lottery tickets. For example GM...a year ago 1000 shares was 30,000+, now 3,000!! I'll buy 1000 shares and if they go bust whoopee....no big deal....but if they only turn it around 25% then the gain is HUGE. There are 100's of stocks in this category. I'm building what I call a Lotto portfolio of troubled companies that are unbelievably panic cheap, with about 25% of my portfolio. Some undoubtedly will fail, others will not. A good long term bet in my book.



Sounds a bit like M4M's FRE FNM buy advice a while ago.

Any thoughts or suggestions?




luc1grunt
622 posts
msg #69236
Ignore luc1grunt
11/16/2008 6:40:23 AM

long term, pure speculation. I'm nibbling at a few for the very same reason. Not investments per say, but gambles with expendable cash (and not too much). Consider it a birthday gift you will be surprised at, but not dissapointed with at the same time. :) GE, GM, F, DOW are just a few of many.

Maybe a "time" target as opposed to a percent target.

luc1grunt
622 posts
msg #69237
Ignore luc1grunt
11/16/2008 6:41:09 AM

Should have thrown in the solars....they will get hyped by by Hussein.

marine2
805 posts
msg #69243
Ignore marine2
11/16/2008 10:41:24 PM

You guys are thinking smart. You know a certain number of these lotto picks will turn upside and give a nice profit for the patient investors. The key is, do we have the guts to tag a few and wait for the rewards. As in previous perilous times in the stock market the same scenario has played out. Choose the most logical companies that experts like for recovery. Metals, oil, solar, healthcare, infrastructure, and auto companies. You only live once in your life so why waste it. Be daring, be bold, be a maverick. After you become a success you will look back and say yes I took the road no one uses and found the pot of gold.

conyeuchua
83 posts
msg #69246
Ignore conyeuchua
11/16/2008 11:44:03 PM

Luc1grunt and Marine2,

Thank you very much for your thoughts. I am still learning.

For what it's worth, my weekend reading shows the following ideas from my list of reliable blogs:

(1) The market makers and institutional traders will continue to inflict maximum pain to small investors (bulls and bears alike) in the coming week
http://www.optionpain.com/MaxPain/Max-Pain.php

(2) Technical analysis is becoming too popular so it is not as useful as a single tool in this tricky market

(3) Here is a free tool that seems to get a lot praise right now (I don't quite know how to use it yet)

http://traders.retracementlevels.com/2008/November/16th%20November%20-%20WEEKLY/index.html

Good luck everyone.


StJoe
91 posts
msg #69257
Ignore StJoe
11/17/2008 3:29:37 PM

BTW, where is M4M?

luc1grunt
622 posts
msg #69264
Ignore luc1grunt
11/17/2008 5:11:48 PM

coney, I disagree with the first portion of #2. It (TA) may be no more popular than it has been for years. there are thousands of ways to interpret the hundreds of indicators or patterns.......but I do believe that indicators in this environment show much lower probabilities for success because the news, hedgies, politics are much more magnified with fear in so many areas. I am speaking "relative" to normally chasotic markets of course.

Price action does show much stronger probabilities ( as I beieve they normally do).

miketranz
668 posts
msg #69268
Ignore miketranz
11/17/2008 8:45:20 PM

Pure speculation,a gamble,why not,thats what the markets are all about anyway.The only problem with buying low is,whats low always seems to go lower just after you buy it.Best bet is to wait until they turn the corner to the upside,before entering into one of these sinkers.

conyeuchua
83 posts
msg #69271
Ignore conyeuchua
11/17/2008 11:33:48 PM

Thank you very much, Luc, StJoe and Mike. I appreciate your inputs.

StockFetcher Forums · General Discussion · Build a Lotto portfolio ?<< >>Post Follow-up

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