A chart shows that KD continues to recover from Monday’s precipitous drop, which vindicates my point the traders (nearly) always overreact, to the upside and to the downside, to news.
Monday, I bought the dip at 10.53. Tues, I dumped the position at 11.29 when I finally realized the KD had been cooking its books. Had I waited until today, I could have made another $0.48 cents per share or so, which raises this question:
"Was KD an ‘investment’ for me, or just a ‘trade’?
If ‘an investment’, why was I buying a company I’d never heard of and for which there were at least 160 peers, plus some ETFs that track the ‘technology services’ sector? If ‘just a trade’, why bother trying to pick up nickels in front of an oncoming bulldozer, because for the trade to be a reasonably responsible one, the position had to be small. Hence, so would be any gains except for bragging right.
In other words --and more seriously-- “When does ‘deep value’ investing, aka, ‘bottom fishing’ become a worthwhile project?”
Also, "What’s the practical difference between taking a disciplined and evidenced contrarian view versus merely ‘buying the dip’ because one has the means and time to do so, and the gig, on average, is profitable?"
The weather is warming. The bulbs I planted last fall are now emerging, vindicating that past effort. Maybe that’s as much “investing” as I want to do right now.
