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HoldEm_Hero
08-04-2005, 10:21 AM
I manage a portfolio for a private company worth upwards of $800,000. The owner stated that he'd like to start seeing more growth when I've returned over 15% the last year and a half. I bought 17,000 shares of Delta (DAL) yesterday at 2.33. I'm nervous. Any Help?
wildwood
08-04-2005, 10:36 AM
There is a famous saying in the market that top-pickers and bottom-pickers become cotton-pickers. With oil in a secular bull market, bottom-picking an airline stock is like trying to catch a falling knife. Of course, if your timing is extraordinarily good, you might do well, but I wouldn't try it. I never want to fight the major trend. Invest with the wind at your back, not in your face.
HoldEm_Hero
08-04-2005, 11:38 AM
Thanks, I will keep this in mind. Any good picks you'd like to share? Whats in your own portfolio right now?
wildwood
08-04-2005, 12:02 PM
Look for major trends. Find good entry points. Cut losses. Manage risk.
midas
08-04-2005, 02:31 PM
Holdem:

1. Your client is on crack - if you really returned 15% over the last 18 mos he should be kissing you a$$ and you should be managing a fund for some real money.

2. I get very nervous when people invest without a clue - Delta is a crapshoot - you're a hero or you're toast.

3. To get differentiated returns you should stick to companies with market caps under $500 million, that's where fundamental analysis makes a big difference.
laserboy
08-04-2005, 07:04 PM
I do not have any particular insight into Delta Airlines, but consider this...

The airline industry is the only major industry not to have turned a net profit. That is over their entire history, the airline industry as a whole has actually lost money.

Legacy airlines were going bankrupt left and right when oil was at $30/barrel... How do you think they will fare now that oil is $60/barrel?
AceHigh
08-04-2005, 08:58 PM
[ QUOTE ]
The owner stated that he'd like to start seeing more growth when I've returned over 15% the last year and a half. I bought 17,000 shares of Delta (DAL) yesterday at 2.33. I'm nervous. Any Help?

[/ QUOTE ]

Update your resume.
Sniper
08-04-2005, 09:55 PM
[ QUOTE ]
I bought 17,000 shares of Delta (DAL) yesterday at 2.33.

[/ QUOTE ]

So, to try and juice your returns, you buy the worst performing stock in a weak sector? Not to mention that Delta is about 1 step away from bankruptcy and trading at its lowest level in 43 years for a reason.

What is your reasoning behind making this investment?
lu_hawk
08-05-2005, 01:37 AM
good thing for me that there are a lot of people like you.
Paluka
08-05-2005, 02:48 PM
[ QUOTE ]
I manage a portfolio for a private company worth upwards of $800,000.

[/ QUOTE ]

and I post in internet poker forums for advice!
lu_hawk
08-05-2005, 03:33 PM
buy Baidu.com it is the next Google but in China. China has 10x as many people as US so 10x as profitable.
Rearden
08-05-2005, 11:53 PM
[ QUOTE ]
buy Baidu.com it is the next Google but in China. China has 10x as many people as US so 10x as profitable.

[/ QUOTE ]

While youre at it can you tell me about China's version of Amazon? (I mean since it will be 10x more profitable and all)
chardog
08-06-2005, 12:08 AM
[ QUOTE ]
[ QUOTE ]
buy Baidu.com it is the next Google but in China. China has 10x as many people as US so 10x as profitable.

[/ QUOTE ]

While youre at it can you tell me about China's version of Amazon? (I mean since it will be 10x more profitable and all)

[/ QUOTE ]

Your sarcasm detector is broken.