Lux Investing
What are your investing rules?
I'm trying to come up with a set of reasonable investing criteria to analyze stocks before purchasing them. I'm trying to focus on small caps, so anything pertaining to that matter would be helpful as well. BTW, what do you think about that VISA IPO? Thanks for your time!
Public Comments
- The Visa IPO is a lot of hype. This should be reflected in the pricing, once priced. Rules: 1. Understand PE ratio. 2. Look at Cash on Hand. 3. Look at the Book Value. 4. Understand the industry of the company then look for the potential for gorwth. 5. Buy the stocks. 6. Pray, pray, pray. 7. Sell...
- Don't buy small retail companies that sell stuff you can't wear. A lesson I learned on Lechters ... off the top of my head: Lechters, Natural Wonders, Bombay Co, Sharper Image ... all bankrupt since 2000. Don't sell naked puts on small cap bios when phase trial news is expected. Selling puts works GREAT in months leading up to the news, but don't keep the fingers in the jar too long. In the last year I can think of: NFLD, NUVO, GTOP
