Out of Sync...

This posting should be easy. Technically it was written on January 17, but it saved away on another laptop so this is the first opportunity that I have had to post my thoughts. It goes a little something like this:

Yep this year my goal is to sync up my recommendations with the handy little portfolio tracker that you see to your right of my site. This will help you understand how our recommendations are doing. The hard part is that it will never completely be accurate because the market is all about timing. When I recommend price points to you, I go out there and put a limit order to buy that stock, which helps me not have to follow its every move or make spontaneous buy or sell trades.

Limit Trade Definition: Instruction to execute an order for a stock only at a specified price or better. The broker continues the order until a specified date or until the customer terminates it. Assume an investor places a limit order to buy at $10 or less a stock now selling at $11. If the stock goes up to $20, the broker will not execute a buy order; if it falls to $10, the broker will execute a buy order immediately. (Courtesy of allbusiness.com)

Great examples:

Rite Aid (NYSE: RAD) – I recommended selling this stock here on my post but it remained on the tracking tool to see if my recommendation to sell if for a small loss was correct. And that appears to be a good decision, we sold RAD for a loss because we didn’t believe the fundamentals were there and the stock ended up plummeting even further. So that is an example of how the tracker can be used to display my thoughts, even though the losses appear much worse. Don't believe I recommended selling, use the search tool and look for all postings about Rite Aid or RAD.

Radisys (NASDAQ: RSYS) – This stock is an example of what I hope to be able to do from here on out when I recommend a stock. I post it here @ URBANOMICS and then buy/track it on my stock tracking tool. NOTICE, my price point for RSYS is $12.25 and I will place a limit order for this price until it fills (See limit order definition above). However, because the stock tracking tool does not accept limit orders I have to buy it at whatever price is available at the time (which I believe was $12.38).
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New Recommendation – China Digital Holdings (NYSE: STV) is a BUY

China Digital Holdings (NYSE: STV) This is a great play, where I can’t take credit for finding this stock. Disclosure: This stock was not produced by my stock picking strategy, therefore I don’t have a lot of info which came as a recommendation from a friend who has been following the stock more closely. It’s Initial Public Offering (IPO), or the first sale of a corporation's stock to the public, was last year and it took off. But when the market cooled this stock cooled even faster. So my friend brought the stock to my attention and as my strategy often calls I began reading the chart of STV to identify a floor or resistance level for the stock. An easy floor if you believe the stock will rise and continue to do well is the 52 week low. I researched STV and found that the 52 week briefly brushed $20.64 yesterday and after looking at previous closing prices and intraday lows I developed my price point of $21.50.

Collectors Universe (NYSE: CLCT) – This a stock I have recommended in the past and they offer a huge dividend payout at the tune of 8%. I am re-recommending CLCT at 11.01 to take advantage of dollar cost averaging down, the dividend and potential growth.