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Author:

LongTerm CapGains

Subject:

Off Topic

Date:

05/05/15 at 5:10 PM CDT

 

 

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Sentiment:

Neutral

The ALU investment

For those who frequent this board that may not have been regulars at the StockArena, my investment style is to go for value plays.  I do a lot of due diligence in order to acertain that I am not buying a dud (easier said than done, but I attempt it) I tend to buy heavily as I believe in buying very few stocks, this helps me stay on top of them.  I do continuous due diligence on them to attempt to avoid negative surprises(minimize losses) and reinforce the view that the investment thesis continues to hold (again, easier said than done), or not, in which caseI am willing to walk away from it with a loss.  I buy and hold for years, it requirea a ton of patience.  Something not  common in today's markets. 

I am of the firm belief that because this market is so geared towards instant gratification and impatience on stocks, it provides great opportunities.  That said, I emphasize that my timing is typically terrible, and my investment horizon is in  multi-years.

ALU is not for the faint of heart, but IMO it could easily be a double in the 3-4 year time frame, i.e,. high risk-high reward. It could possibly be more given the drop since the acquisition was announced. The reason I am buying more is because I believe these levels are a gift.

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