Hey Sagi Sir, great call as always! 30 years in the market, no wonder all your calls are spot on. Would it be advisable for me to get in now?
You have downgraded me by saying that I have 30 years experience in stock markets; Actually it is 42 to years and a few months!
Now comong to your question, the answer is this;
One must realise when the stock has moved to such a level in a swift move, there could be profit booking . Such a profit booking is possible in abg ship now.
I therefore advise you not to chase a stocK at a high level. You will be left with it and perhaps youy may throw stones at me as well for luring you into the stock!
having said that , I must say that this stock could correct to 575( or perhaps 545) before it resumes its forward journey. to 820 by dec 2008 to march 2008.
So my advice to all the shareholders would be to do one of the following
1)Book profits by selling 70% of your holdings tomorrow and keep the cash to repurchase at the lower level.
2) or donot worry about the intermediate correction and continue to hold it for the said 820, by keeping a strict trailing stop loss
It is for you to choose any of the methods .
As far as I am concerned , I like the first method , because I consider safety of my existing profit . And by selling the 70% of your holding , perhaps the cost of the remaining , shares is reduced to so low a value , that u can hold this stock in your long term core portfolio , without worry.
I always book partial profits , And such a practice will insures me against any shock.
sagi
!