RE:BENJ GALLANDER wooffer9 wrote: I NOTICE ``CONTRA THE HERD`` MR GALLANDER BOUGHT INTO DM & GOT OUT @ .29 CENTS IN FEB. IF I READ INSIDERS REPORT CORRECTLY? INTERESTING. WOOF
While this may be an indicator of what Contra the Herd thinks of this stock, there are many other factors behind selling at .29.
Do you have access to the Contra report? They always give reasons for buying or selling.
Do you know if they sold all, or just part of their position?
I was there subscriber for over 5 years, until July 2020.
Few things about their investing style:
1. They always, ALWAYS have a sale price range and nearly always exit the position when the target is met, wether it's few years or few days.
2. The only times when they keep holding past the initial target price is when the company's fundamentals or market conditions improved so much that it radically increased the sell target. But even then they will often sell part of it and take some profit.
3. They sometimes sell a good company when their investment portfolio has an overexposure to a particular sector.
4. They always sell if new development in the company or in the sector increase the risk of their clients loosing money.
In 2015, they sold, at a small loss, Harmony Gold Mining which they held for about two years. In the next couple of months, the stock went from $0.60 to $3.5.
I didn't follow their guidance at that time and kept the shares. Then sold half of my position at a 150% profit and the rest few months later at only 20% profit. But in a long run, they were accurate in their reassessment of the company - that the growth momentum is lost and there no indications that SP will reach their $10 target (approximately, don't remember exactly) withing their 3-5 years investing time horison. They were right. Since then, HMY was mostly a $2-$3 stock, with SP only briefly staying around $5-$6.
There were also instances when their investment strategy and selection of stocks didn't work at all.For example, investing in the oil sector and buying few oil sands supporting businesses in 2016-2018 was a big mistake.
Not saying anything about DM, just sharing my limited experience with the Contra Guys (this is how they call themselves) investing style.