Remember Edison (EIX)?

Discussion in 'Trading' started by Babak, Apr 17, 2002.

  1. Babak

    Babak

    It was just about a year ago that every business media outlet was devoting prime space to talk about the demise and possible annhilation of EIX and PCG due to the California energy debacle. Remember?

    Taleb's book "Fooled by Randomness" got me thinking about this and wondering what ever did happen. A two year chart is attached. If you had the cojones (or brains) to pick them up at that critical time it would have delivered 80%-100% returns up to now.

    That ofcourse is hindsight but it does tell me two things. That there are times (perhaps rare) when the market missprices equities by a wide margin. When everyone (and I mean everyone) is heading in one direction in a very intensive way, it is time to fade them. And two, mayber a holding period longer than a few hours isn't that bad after all. :D :D
     
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  2. Babak

    Babak

    Chart of PCG over two years
     
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