MGAM sold! goodbye to an oldie!

[Karel]

Almost 20 months ago I bought MGAM, picked with my Mimicking MrMarket screens, and got caught in a bad news price drop (to the tune of -50%!). But earnings were still growing over all that time, and now it has skipped home with a 16% profit. It may not sound like much, but just look at what SPY and QQQ did over that period: negative!

MrMarket is HUGE!!

[tx_damnyankee0]

Congratulations!!! It is always nice to walk away with a profit after a downdraft.

[allnewin01]

The exact same thing happened to me. Why did you sell? I am going to sell half of my position soon and continue to hold the other half.

[Karel]

The exact same thing happened to me. Why did you sell? I am going to sell half of my position soon and continue to hold the other half.

I sold, because it hit my target. Actually, it overshot my target by one percent, but I am not complaining

As MrMarket himself says, there are a lot of attractive stocks, any day. Take the 15% and run may not be the best way to play this stock, but as a general strategy, it has proven its strength. I stick to the strategy, and don't worry about the rest. BTW, you do have an exit strategy for the rest of your position, don't you?

Regards,

Karel

[allnewin01]

My hunch is that they might miss their earnings target this quarter due to all the turmoil lateley. But I think they are still undervalued and 2004 should be a good year. Using intrinsic value and PEG, I can see a target of about $ 55 next year, assuming things get better as I expect.