Chuck, you are probably right about loading up the boat on AMNF. Last quarter's earnings report was the best one ever in the few years I've been in the stock. Really stellar! The acceleration of growth in both sales and income is very encouraging. I hope for all of us it is a good indicator of things yet to come. I like everything I know about AMNF, except that the company is headquartered in the People's Republic of California.
Unfortunately, my stock portfolio provides my only source of income. I don't have the other forms of diversification you do - no other income and no other significant assets. (Unless I want to sell my house and live under an attractive bridge somewhere, but I'm a bit far north for that this time of year.) So I feel I must be diversified in the stock market. Even though AMNF is my favorite stock, I don't dare take too much larger a position. It is already my largest position by far. At my age, I really don't want to have to start a new career as a Wal-Mart greeter, if I make a big boo-boo.
Actually, while I feel very comfortable with AMNF, I have been raising cash like crazy lately. (Keeping all my AMNF and a few other things.) The market is up 2,000 DOW points since mid-October, and after nearly 6 years of straight up, I'm not at all sanguine about the general market. I've under-performed the general market in the 2nd half of 2014 for the first time since I started investing in stocks a few years ago.
When I look at the many bio-tech stocks up 50-100% since mid-year I understand why. Many of those companies have exorbitant PE's or are losing money, which is why I don't hold any of them. If I did have a portfolio full of them, I think I would hit the sell button on January 2nd, 2015 and take a year to figure out how to minimize the tax consequences. Are bio-techs the new internet bubble stocks? I don't know, but things don't go up at their recent rate forever.
In reading some of the other recent message board comments, I see some are hoping for an AMNF buyout or more publicity to move the stock up fast. A quick profit is hard to quarrel with, but I really prefer to see AMNF keep chugging along doing what it's doing. The longer it flies under the radar the better, as far as I'm concerned. I'd rather wait some years collecting growing dividends and have a $9.00 buyout on a $6.00 stock, or a $15.00 buyout on a $10.00 stock, than a $3.00 buyout on a $2.00 stock.
I wouldn't feel that way, if I knew of other companies similar to AMNF to invest in, if AMNF got taken over, but I don't know of anything else I like as well. If AMNF never gets bought out and just spends the next several decades becoming the Coca-Cola of quality Italian foods, I'd be plenty happy with that!
Anyway, Merry Christmas and a happy and prosperous New Year 2015 to you Chuck (and everyone else here). And may AMNF's last earning's report set the pattern for future ones! Maybe I'll short some bio-techs on December 31st. If it works out, I can buy more AMNF! ;P
