Stock Trade Commentary
I just can?t resist not buying when markets drop by 200+ points; it?s too exciting to miss out on the sell off out there. Just last Friday, I mentioned in my weekend edition that investors might be looking for any reason to justify a sell off and this is exactly what took shape today. Canada?s positive outcome in getting a majority government was totally ignored. Instead, investors chose to focus on Bin Laden?s death according to Bloomberg:
?Investors pared riskier assets as they assessed the potential impact of the May 1 killing of Obama bin Laden by U.S. forces in?Pakistan?
Are you kidding me? This must be the dumbest reason to trigger a selloff in the stock market. Why not choose unemployment, debt woes or high oil prices for a reason? The US is as hated as ever by extremists and the ideology that produces this kind of people is still well and alive producing replacements every day with or without Bin Laden.
Maybe since we?re finally in May, investors are selling and going away, I prefer to believe that over the above which brings us to my latest buy. You guessed it right, Talison is not in the oil and gas sector, the company is one of the top global lithium producers. Talison announced record production and sales of Lithium concentrates on April 19 and should be announcing financial results for its Q3 2011 on May 12.
Talison has no debt and it recently cashed up with a PP at $6.50 in order to fund its expansion to double capacity. I won?t spend too much time on the fundamentals of the company because for me this is a hit and run trade. I believe I bought the stock at a very good price today and look to sell it as soon as I see money on the table. If not, the fundamentals of the company make a compelling case for holding.
I am tracking multiple buy targets but because ammo is limited, I have to be nimble since we have a long summer ahead of us.
Have you bought or sold any stocks lately?