Pick the Right Stock
Anybody still remember Enron, the promising energy trading giant that tanked all the way to bankruptcy in a matter of days? Who's that dumb putting his money in that land mine? Yah, I confess it's me, and many other investor from million dollar funds to individual 401K account.
Now let's flashback to January, 2002 when people are still recovering from the Nasdaq crash. There is this stocks sitting of most investor's radar in the category where people avoid the most, internet. In addtion, being in a foreign country China, Netease.com (NTES), fluctuating between 3 quarters($0.75) per share to just over a dollar ($1.25) for almost half year, would probably sitting unnoticed away from most institutions.
Anybody brave enought to invest 1000 shares in this penny stock, which cost $750 or roughly one month rent of single bedroom apartement, and leave it till today without tracking it. I mean, who would care a stock worth a monthly rent after losing tens and thousands of dollars in the portfolio. Guess what this man is getting out of his one bedroom rent investment today? $85,200!! Speaking of expensive houses, this would easily give you a 20% downpayment for most houses today. Imaging if you've dump all your saving and buy it for $7,500 you'll be almost ready for retirement with close to a million in your account. Unfortunately, I wasn't that person, and neither are many of you who are probably hit your head against the wall now.
Picking the right stock is difficult and picking the right stock at the right time is even more difficult. Who would imaging the shut gun maker, Taser International (TASR) would sky-rocketed from $4 a share all the way to $154 a share in just one year from February 2003 to 2004 and back to planet Earth also in a year to $18 in Febbruary 2005 and is still finding bottom at $6 today.
I'm hoping by careful analysis, we would be able to find stock that would perform, if not as good as Netease.com but at least not as bad as Enron.
Now let's flashback to January, 2002 when people are still recovering from the Nasdaq crash. There is this stocks sitting of most investor's radar in the category where people avoid the most, internet. In addtion, being in a foreign country China, Netease.com (NTES), fluctuating between 3 quarters($0.75) per share to just over a dollar ($1.25) for almost half year, would probably sitting unnoticed away from most institutions.
Anybody brave enought to invest 1000 shares in this penny stock, which cost $750 or roughly one month rent of single bedroom apartement, and leave it till today without tracking it. I mean, who would care a stock worth a monthly rent after losing tens and thousands of dollars in the portfolio. Guess what this man is getting out of his one bedroom rent investment today? $85,200!! Speaking of expensive houses, this would easily give you a 20% downpayment for most houses today. Imaging if you've dump all your saving and buy it for $7,500 you'll be almost ready for retirement with close to a million in your account. Unfortunately, I wasn't that person, and neither are many of you who are probably hit your head against the wall now.
Picking the right stock is difficult and picking the right stock at the right time is even more difficult. Who would imaging the shut gun maker, Taser International (TASR) would sky-rocketed from $4 a share all the way to $154 a share in just one year from February 2003 to 2004 and back to planet Earth also in a year to $18 in Febbruary 2005 and is still finding bottom at $6 today.
I'm hoping by careful analysis, we would be able to find stock that would perform, if not as good as Netease.com but at least not as bad as Enron.
posted by Stock Geek at 10:16 AM
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