There is an article in The Wall Street Journal today page see C3, the article didn’t interest me much but that line- opportunity often feels like a punch in the face- that is one for the ages.
I feel like I have been punched in the face a lot this earning season. It kinda torques me off, I know I should be dispassionate - but I am not that evolved…
Now that the trading restrictions are over I can tell you I bought more Skx last week. Going into the report I had a 10% position. Like many of you I was at work when the earnings came out. So I saw a headline on my phone about the stock cratering after hours, groaned and went back to work.
When I got home I pulled up the earning they looked pretty good, but I had not adjusted my numbers for the split, so I needed to do that to reassure myself.
So here they are:
2014: .20,.23,.33,.14 (all four =.9)
2015: .37,.52,.43 (Three =1.3 up 45% over last year’s total!!)
I was flummoxed! Why on earth what a stock like that be down 30%? Truthfully I have no idea. But I I did feel like I’ve been punched in the face. And now I had a decision to make I told you I had a 10% position going then course with a 30% drop I had a smaller position. I had been raising cash for a while, I made the decision to buy more. I asked the Fool compliance department for permission to trade and got it. And I bought more, I was lucky and got in below 30.
I cannot explain the market behavior of late, it is not the first time The market has perplexed me, not by a long shot. I think Saul has great powers of emotional detachment, but I’m not Saul a torques me off. To prevent myself from doing something stupid I have got to walk away from the market. I don’t mean I change any of my positions, I mean- no watching CNBC, no reading the financial press. I can read earning releases, annual reports, factual things, but no opinions.
I made my decision based on facts and now I need to give my companies time. I experience self doubt, but I distract myself from the market. I know myself well enough to know what steps to take, and remind myself that the market goes nuts sometime. Sometimes to my advantage, but this year they craziness seem to be against my positions.
Now I am going to put some ice on my bruised face and I am going to read a good book, so I can ignore the market until Go Pro reports.
Long Skx, no position in Go Pro