Conversion Solutions Holdings (fka CSHD)

[SammyTheBull]

I rarely play the pennies, only when there's momentum on some. I went away for a week and came back to a 50% loss on CBAY. So either I (a) take the loss or (b) wait for the financials. I just waited, being down either way. That's pennies for you.

Nov/Dec is a bad time in the market, regardless. There's a lot of tax loss selling prior to 12/31. Pennies just run on momentum. You're right, it's all about timing (and luck). But most won't do much in the last 6 - 8 weeks of the year. I start fixing my targets on Feb/Mar depending on the sector. Certain sectors rely solely on the last quarter for positive margins (or momentum). I stay clear of anything in energy. It's way overdone.

Right now, home building and real estate is slowing a lot. Home improvement (Home Depot, Lowes...and no, not SLJB, lol) will pick up drastically. Commodities, like Copper or cement will drop since new homes are on the decline. Electronic sales should be good for the 4th Q. So will groceries or liquor (thanksgiving, christmas, new years). Retailers reported a 30% increase in spending budgets from consumers, but they'll die 1st Q so stay away from them even though the numbers will look okay.

Think like a consumer, look at the forward trends and then play accordingly.