Jagged Peak, Inc. (fka JGPK)

[toddski]

I agree with you on the liquidity issue. $10m for a company that has been compounding growth at 20%+ for years is difficult to find. Also just for fun if you plot the simple moving average and RSI on a 5 year chart, you will see that 90% of the time it is above the SMA and whenever the RSI dips below about 45 it is a great time to buy. Both of those indicators as well as the hopefully impressive Q4 numbers equate this to a strong buy imo.


http://finance.yahoo.com/echarts?s=JGPK+Interactive#%7B%22range%22%3A%225y%22%2C%22indicators%22%3A%7B%22sma%22%3A%5B%7B%22id%22%3A%22sma50%22%2C%22name%22%3A%22sma%22%2C%22params%22%3A%5B50%5D%2C%22lineType%22%3A%22line%22%2C%22color%22%3A%22%2338761d%22%2C%22weight%22%3A1%7D%5D%2C%22rsi%22%3A%5B%7B%22id%22%3A%22rsi14%22%2C%22name%22%3A%22rsi%22%2C%22params%22%3A%5B14%5D%2C%22lineType%22%3A%22line%22%2C%22color%22%3A%22%23cc4125%22%2C%22weight%22%3A1%7D%5D%7D%2C%22scale%22%3A%22linear%22%7D


One part I have a hard time agreeing with you on is your comment on how much to allocate to each stock. If you capped your limit at 5%, that means you would need to own 20 individual companies. I don't know about you but my sweet spot is less than 10, because it becomes difficult to track all of them. And if you do end up finding a multi-bagger, it won't make a dent in your portfolio because you never had enough money allocated to it. Especially for younger investors, I think it's important to swing hard and aim for the fences. With that said it's also important as you noted to invest in ETF's as well and imo that's what a 401k is for. Unless you were rich to begin with, but then you wouldn't be buying little companies like this.