The trouble continues for a couple of technology companies that were beloved by the Street for the past decade. Research in Motion (RIMM) and Netflix (NFLX) have been high flying stocks that have made a ton of cash for early investors. If you got in early enough then your ownership stake may have made you rich. If you got in late then you have lost a ton of money from your investment. [Read more...]
Two Buys And A Sell
September 10, 2010 By 6 Comments
I am keeping an eye on Chicago Bridge & Iron (CBI). I am looking for a good entry point to add to my position.
Netflix (NFLX) looks expensive to me. A stock that is trading at more than 50 times this year’s earnings is not cheap by any valuation. I love the company but it’s just too darn expensive.
I have been pessimistic on Hewlett Packard (HPQ) since the departure of Mark Hurd. The stock is getting really close to being a buy at $38. At $35 a share, I would be comfortable owning HP.
Great Growth Stocks Sold Too Soon
July 13, 2010 By Leave a Comment
Today I would like to take a look at an investment mistake that I have made in the past. It is a common mistake of many investors,. The mistake is failing to stay invested in great growth stories that have the potential for multibagger status. Selling a stock too soon can rob you of the potential profits. Many investors worry about holding a stock too long but too few consider whether they have given up on a stock too quickly.
Here are 3 great growth stocks that I sold too soon.
Netflix (NFLX)
Who knew that renting DVD’s through the mail would become so popular? Shares looked expensive in the early 2000’s at $26. Since then the stock has split and returned 1300% over the past 8 years. Needless to say, my selling early was a big mistake.
Chipotle Mexican Grill (CMG)
I thought that this would be just another fad restaurant chain. There are so many chains in the restaurant industry that it’s difficult to tell which ones will make it and which ones will now. Well, Chipotle made it. Chipotle shares are up over 200% since the chain was spun off from McDonald’s in 2006.
Google (GOOG)
During Google’s initial IPO, shares were selling in the $85 dollar range. I bought in at $145 and I sold out way too early in the upper 200′s. I failed to see the long term growth potential of Google. Shares of Google are now approaching $500 and the stock could be an earnings giant for a decade or more.
An important lesson to learn from this is that sometimes the best investment ideas can be found in your existing portfolio.
Tomorrow I will take a look at 3 stocks that I believe have multibagger status written all over them.
