FIRSTPOST FOR PTEN Too many Canadian investors are too geocentric about Canadian companies only. Many of my top picks early on STP ,WFR,FSLR had spectacular runs early this year and good old VPO had multibaggers in 3 months and some ten fold and 20 fold profits on options. As my mantra says when you have made a spectacular profit and you see a stock start to give up a big gain, sell your positions, thats what I always do and dont look at them again. Dont chase them higher if they run, if they fall, wait,wait ,wait, to see if a bottom is reached.
If you think a stock is going to reverse and go up again, ( possibly WFR is doing that now), I tip toe a position with a smal lstock purchase and a small position in out of the money options. If I am wrong I have only lost a fraction of the multibagger gains from before. If I am right I DO NOT add to the initial outlay. If I sense it will keep going up , I may buy yet a cheaper option out of the money and more stock but only half of the original capital invested I F AND ONLY IF THE ORIGINAL SALE has gone through.It is easy to get caught up in the emotion of being on a winning tradeand then betting the farm. If I think thr position will wide higher I then sell on way up and reduce my exposure by SIXTY PERCENT THE NEXT TIME.
Now onto PTEN. This is in my opinion the next Hyduke type of stock , in other words, it is attractive on all fundamentals going forward. It represents outstanding value for those seeking exposure to a value stock in the Drilling / Energy Services space and is a strong candidate to be taken over. My proprietary model is telling me there will be a move to at least twenty dollars by November, and should Romney win, will see no resistance to 24 dollars. I am getting alot of emails asking me " VPO when will the Venture touch bottom "? My answer is the same, avoid all Venture stocks , there are easier ways to make money making sound choices in the larger cap and mid cap names.
I have a rule on Stock House. If a bullboard is beseiged by a ton of posters expect that 90 percent of posts are serial pumpers or bashers. The INT bullboard is one of the most read on here, and the banner advertising for Ortsbo is plastered all over the Stock house site. With that level of "exposure" and yet no movement in the price, except down, this represents QUICKSAND TO ME. I tell all to avoid stocks like that, look for little heralded gems that no one has heard of, and might not for some time. Do not get depressed if no one sees your way of thinking or even if your position turns south on you for a while. If you do sound fundamental analysis the market will discover your gem, could happen in a day or a few like many of my recent picks, POT, TDG, SVY, PTEN , etc. or it can take years. I cannot respond to the large volume of emails I get so take this advice to heart.
On my watchlist are only two Venture stocks, thats how little regarded I think the whole Exchange is at the moment.
Happy Canada Day
(from Dubai)
VPO
PS , my work almost done here, will be returning to Canada soon.