RE: StuckThis is why you need to buy NAG and forget about for at least 3 months. Check up on it again then, make sure all is well, and then stuff it away again for another few months.............etc, etc, etc.
Basically, some would say that stocks goup because of hype. Hype, momentum, the greater fool theory -- all waysto describe the seemingly irrational way some stocks behave. But whenyou look closely, you will see that the hype is always aboutearnings. They also go back down eventuallyunless the earnings are there to sustain them. And when hype-based momentumturns around without a foundation of earnings, it can get ugly.
Over the longterm, stock prices rise because company earnings rise - which I believe is the current trajectory of NAG at this point. But the fact that stocks rise because of earnings is only long-termtruth. Prices don't track earnings that closely over short timeperiods, and even long-term, the relationship is not necessarilyprecise. There's a lot of room for hype.
Most of the time, stock prices within some earnings-dictatedrange are more influenced by the market's perception of what earnings willbe. Sometimesthose perceptions are realistic, sometimes they are wildly unrealistic.But always the perceptions are about earnings.
One basic reality is that if you know the price ofa stock will go to $10 tomorrow, it will go to $10 today. If you know a stock is going up, the natural reaction is to buy it.If "everyone" knows it 's going up, and, therefore, "everyone" startsbuying, what happens? Increased demand plus limited supply equalsincreased price. As the price approaches what "everyone" thinks it willbe tomorrow, demand slows to equal supply, and the price levels off.
Day-to-day and even month-to-month price changes are often crazy. That'sa really good reason for not watching your portfolio too closely.Concentrating on the company's long-term profit picture is far healthierthan worrying about what "everyone else" thinks of your stock.
Buy this baby, stuff into your stock for a while, and move on to your next adventure.