Mostly: Classical

[Sexton O Blake]

Nickels and Dimes..

I have been investing since I was 20. I am doing ok but definitely could have done far better (esp with the 2000 highs). Ah well.

I have been playing pennies for quite a while. Definitely addictive. But for me getting in and out has been a problem - plus the inability to find a stock that rides a repetitive cycle. I have had success but nothing that would keep me wanting more. If you said you traded 60K for a 4cent spread thats $2400 in gains - which is nice. I am almost 100% I would have not done that and would probably lose my gain and worse - generate a loss --- unless it "popped" to above 50 or 60. (hence why I fail so much with these).

John pointed out about "40-45". Heck. Lady Luck must be shining on everyone but me. I have had zero luck with that methodology. Even PFE $40-45 (Dollars not cents) - when I bought at $40 broke and eventually hit lows in the $20's. By the time I see a "channel" pattern like that, it is too late.

As you and everyone can see - my entry and exit points are extremely poor (the word shit was used lately but not at me.. but I know that is what you are all thinking! I know.. you see.. you agree!!).
- CUX was minor;
- CPST has been brutal - and I want to ignore that one. (I added on what I thought was a an uptrend - which failed; but I chalk that up as experience). Lets ignore that I actually could have made serious money in the $3s.
- PMZ - a nightmare - get me outta here.
- I did buy SU on what I thought was a good entry point. (I will ignore the fact that it was good this time - only if I can post new picks that can do the same will it mean anything).

I am starting to change my evil ways - learning more about charting and trying to remove emotion and just get in and out - with the 5-10% losses and capitalize on the gains. My goal is to expand my horizon to be able to get out of one stock and into another at a moment's notice and not look back. Part of this includes ridding myself of the pennies until I can increase my portfolio size considerably. Actually to move into stocks that trade north of $10 is what I want to do. Reduced risk = reduced reward. But that is ok. Canadian if I can find them - but US (with currency fluctuations in the forefront) if I have to.

Some of the issues I have had with pennies have been:
(A) the large spreads (bid/ask) and thin trading;
- I see a pattern of say 24-28 and try to ride it - not successfully. A few times I have bot at 24 sold at 28 then re-bot at 24 - but then it goes to 22-23 to 25 (why sell with a penny profit?) but then back down below 22 and so the tale of the tape goes. Failure. Woulda shoulda coulda. Yet it is up 2 cents today - but can you sell it?

(B) they tend to meander down (slowly) and just sit there for months/years)
- BKB (IMI) did that but eventually did get re-promoted. But that is just foolish dead money. Buying at 10 cents might seem like a LOW.. but then it goes to 6 cents. You can't sell it - you are stuck. Do you buy more? Some are luckier than others.

(C) they sometimes consolidate - and that to me has been a serious death blow.
- Even though I lost money on Hemosol (HML) - when I heard consolidation, I ran for the hills. Sometimes they work, but for me, it is a crap shoot. (HML didn't work; just good money after bad if I continued with it).
- Acclaim Energy (AE) is one of the few that has done very well.
- I am still in a wait and see with Redback.
Consolidation should be foremost on most investors mind - but I think it is more of fleeting thing.
- BKB - I bot at 6 and 8 cents - thinking that was as low as it could go. And I had thousands - it consolidated (1 for 6) and then post consolidation - yup managed to meander down again to the 10s - before its epic climb into the DOT.BOMB stratosphere. (Gratefully I bot enough at 6/8 to still have thousands in post consolidation; but there was always the thought - should I have bot more when it fell to 10cents again?????)
- I have others that have consolidated - or are sitting so low that they probably will consolidate.

BKB (IMI) fell into the pattern my dad followed for years - 10 cents -> $1. They would sit at 10c for a year or two. Then move up slowly - to say 20-30 over months. Then over a week climb to 40 then pop to $1 then back down to 50.. then meander down to 10 again - slowly. This "promotion" cycle, is what my father loved. I rode it in 1990 - missed the next one, and then got in for the 6cent version before they took off again - the 3rd time I saw it though - it consolidated -- the party was over (excluding the net pop).

But then he wasn't heavy into them - and that is the point of this post - the over exposure.

My father had been buying Bell stock (employee) for years - getting the employee discount - and hoarding it. The pennies was the side bet. But for me it has been almost 30-40% and at times greater. And for someone that can't even get into/out of a large stock, this is definitely not a good thing.

Today I have junk in all accounts. Poor execution - all over the place. Likes of AQI; FCO; CPT .. and on and on it goes. Stars like SU; RRI happen - and seem to negate the other poor holdings - but I am stalled.

I have to move into the world of - limiting my exposure to these (less than 5%). To have one - at most two of them. Then if something else comes around FORCE myself into either ignoring or eliminating the existing FIRST then get into the new one. I can afford to lose a few thousand on these but that is all.

Also I have to refine and improve execution. RRI - I got out mid-10s - that was "so/so" ok. But the $9 trades - that was poor.

I have to convince my brain (the minor one north of my neck), that I have to GET OUT NOW - CAPTURE THAT PROFIT and NOT WORRY ABOUT THE GOOSE. There are others Sexton - you made a great profit. If it turns around - eat the few points and perhaps try again. But don't hold on as it drops "hoping" it will turn back up for the better.

This entire post has zero to do with the success of anyone with these things. I have been beaten and bruised - repeatedly - I must acknowledge that and move on. I will manage how I can to get out of the ones I have but I have to turn over a new leaf. I know I can be successful at investing. I just feel I would rather deal with stocks with real earnings; real growth and real volume. Where a stock pattern means something. Sure I own PM stocks which may pan out nicely - I can only hope. Less interested in the potential for giant gains with a 30cent stock cracking $1. (And I do not wish to debate the meaning of "real this or real that"; secondly - CPST does not fit into this category either; RRI might - as I posted on SI..)

I know what isn't working for me - that is step 1. I finally acknowledge that.

Hopefully I can contribute to this great forum (the only thing I read at all outside Business Week and investment books) - with some interesting buy candidates in the future.

Finally, "It's not good bye, just good night."

Cheers all!!!!!!!!
Sextonian

Nana Mouskouri
I used to stand on the corner when I was a child
And I would play my guitar and sing as the people went by
The sidewalks were crowded, but I'd just sing louder 'cause I didn't mind
Spending my time, spending my rhymes, and singing for nickels and dimes

Nickels and dimes, a song at a time for nickels and dimes
I'd brighten their day as they'd go on their way and they'd brighten mine
A sidewalk rehearsal for dreams that I held in my mind
I knew that someday, in my own special way, I'd repay all their nickels and dimes

I recall the sidewalks each night as I stand on the stage
As I play my guitar and sing for the people who pay
'Cause finally, I made it to what they all call the Big Time
But I still remember I still owe some nickels and dimes

Nickels and dimes, a song at a time for nickels and dimes
A sidewalk rehearsal for dreams that I held in my mind
So, if you remember a child on the corner of time,
You'll know that I wrote this to repay your nickels and dimes
(repeat and fade out)

(PS: Stupid me for posting Ontario has a holiday - as if it is the only place that matters (ahem) - I think most provinces have a day off Monday. I meant to say the TSX is closed and that Monday hopefully can be a good day for CPST).