The market seems to be pricing in a very strong likelihood that coal prices will remain depressed for the next several years. That’s definitely one possible scenario. However, human beings are notoriously bad at making specific predictions about the future – especially in regard to the timing of certain events.
Normally, you wouldn’t want to sell a stock at a low price based on information that you don’t fully understand. However, the strong exception for me is when there are accusations of fraud or accounting discrepancies. As an investor, there is nothing that scares me more.
Value Focus Update: Traded Back Into KMR, Increased Position in LF, ICPW Shares Not Attractive at Current Levels
I like to keep the Value Focus portfolio fully invested. I have no way to predict catastrophic events, or if and when the public might panic for no reason. I really don’t follow the major indices, or even track the monthly performance of my own portfolio, the indices, etc. I focus my energy instead, on finding stocks that I think are likely to rise significantly in value over the coming months and years.
Two of the current executives at Ironclad Performance Wear (ICPW) have been accused of fraud by their former employer. In this post, I discuss my reaction to reading the details, as well as offering my thoughts about Ironclad going forward.
I visited some hhgregg stores for the first time this past weekend to check out the Labor Day Sale. While there were several people buying and applying for credit, the stores seemed pretty dead, overall. So while I’m not convinced that the Labor Day sale is doing wonders for the retailer’s books at the moment, I’m not discouraged from owning the shares.
I don’t know if HHGregg is at the precipice of turning things around, and having investor sentiment improve tremendously. But, I know this. If that does happen, those who ignored the facts listed above will be wondering how they missed something so obvious.
More portfolio changes.
Value Focus Update: Taking LeapFrog (LF) Up To Full Position, Taking Small Position in Bebe Stores (BEBE)
I’ve continued to ask God for confidence and freedom from fear. I sure would appreciate if you would pray for me about that as well. It takes confidence… faith… a large ego that says you’re right and everyone else is wrong… I’m not sure what it takes, but it takes something that most people don’t have to buy stock in companies that everyone else hates. I’m not sure I’ve quite gotten it yet, as evidenced by my quick exit of ARO and coal stocks. But, I’m going to continue trying, and I’m going to continue asking God to give me what I am lacking.
Portfolio updates and commentary about the coal industry, HHGregg (HGG), and LeapFrog Enterprises (LF)
I executed a bunch of stock trades today and now I’m blogging about it! 😛