Basket Trade of Losers

Discussion in 'Stocks' started by michaelscott, Apr 19, 2007.

  1. I have a bunch of stocks that if purchased today as a basket will probably yield 20-30% in 2-4 months. Those stocks are the following:

  2. gkishot


    Interesting thread. It would be also interesting to make a comparison with a basket of winners in 2-4 months.
  3. The losers above are not just losers, but big losers where their price has come down massively in the last 6 months.

    All of them had traded up at much higher prices at one time and on good fundamentals.

    In looking at the charts, it does appear that a bottom has been put in on each one. The time to buy stocks is when they are at "the low". Unfortunately, these low times require a great stomach.

    All of the companies I listed employ thousands of people. All of them have millions-billions in revenue. All of them have products that we need. None of them are trading to the downside today (and that tape looks real bad).

    As scary as some of these picks look, I have confidence that each can bounce at least 20-30% within months and might see a double in 12 months.

    The beauty of this basketrade is that its hedged. You know that one of the stocks on the list will double. So if one or two on the list do not perform and wreck, then the others will make up for those losses.

    At these price points, I dont see much downside in any one of the stocks listed.
  4. I forgot one other to add to our basket which is HA. The Hawaiian Airline company.