Honda Motor Company

Discussion in 'Stocks' started by ByLoSellHi, Dec 21, 2006.



  1. Fundamentals? Relevant to a degree. They are the marketing tools to merchandise paper. In the context you're viewing, they are in the past tense. As such, knowledge "everyone" knows isn't worth knowing. Big money is generally on the surprise side.

    Risk tolerance? Well, I can't go to the supermarket and buy a loaf of bread once every six months. Actually, I'm a little beyond that so let's say the rewards go to those that take risks. Losses are assets to offset future gains. IF I don't have losses, I'm not making enough trades. This is a trading rather than investment site.

    Textbook definition of beta is a measure of risk. Actually it's a measure of volatility. And a rather poor one. Hinges on the timeframe of the computation. Geared toward portfolio management. Me? I have open positions, not a portfolio. ATR is more sensitive and thus dynamic.

    My perspective, the risk/reward ratio on HMC is not favorable, which is why I responded. . Something to be said for an all time high. Little resistance, everyone has a "profit". On the other hand, one all time high is a special one. The last one. Maximum risk point. Only can be ascertained in hindsight.

    IF you're going to adhere to an investment mindset on a trading site, you might give some remotre thought to considering stocks just emerging from multi-year low level bases. Helps to have a low price to sales ratio and some insider ownership. Risk-free? Hardly. But a better R/R than Honda. And position sizes are more flexible due to low prices.

    For educational purposes, take a look at FULL charts since inception on the following ELASPSED (no longer to be bought) base breakouts (since 2003):

    ACU/AKS/ATI/AXE/ATR/BGC/BKE/CAS/CET/CRS/CYD/FRD/GBE/LPX/MAXC/MRO/PRA/PWX/SYM......then compare to Honda over their respective time frames.

    Pssst, that's the closest I get to teaching.
     
    #21     Dec 22, 2006