Mark,
Thanks for the details. I get the idea a lot better now. But if I would be raising the pc-value without selling the stock per the Sell Signal, that would be identical of having sold the stock and then re-invested it again for that amount(ignoring trading costs).
This means that pulling a Vealie is like saying: "I have faith that this stock(the goose that lays golden egg) will move higher, so with the cash that it created for me I will buy some more shares."
OK, having gone that far(having internally re-invested the last Sell), I might as well invest more of my cash rather than sitting on it.
Right. I understand it. Having extra cash also allows me to think of starting a new Aim...think...evaluate... think...Say this stock I have is laying golden eggs for me....I think I will invest in it some more.... Some stocks keep rising and rising and not to invest in it would be foolish.
I agree that the statistical risk for a sudden drop will rise as the stock reaches to heaven, but if you know the company a bit it may well be so that the real risk of a price dump is very low.
So, essentially, a Vealie, therefore is in effect a go- ahead signal to re-invest the cash the stock is generating. I say then that instead of pulling a Vealie I might as wel plow the cash it has generated back into the stock and increase the equity(using a stop/loss to protect the gains.
Re-investing the cash an investment has generated is therefore an Double Vealie, or a Turbo Vealie.
Conrad
