Gentlemen and Ladies,
Why does this stock price keep climbing the way it does? How long can it keep it up? 50%+ in the past 90 days! This company is a classic TMFSpiffyPop Rule Breaker. I have several times considered adding to my winning investment as it seems they keep finding ways to put their hooks into the next level of the real estate market, but it requires caution because it hurts when the Ruler gets Broken over the back of my knuckles. My caution has left me missing 10, 20, 30% more return on what ever capital I coulda/woulda allocated.
What to do?
1)Ride it up and up then ride it down and add more on the eventual dip? I believe David Gardner would propose this method, even adding as it rises and taking the potential short term loss in expectation that 5 years from now Z will be a much bigger, better, and valuable company.
2)Ride it up and up then bail out because the stock price has moved up 50%+ in 90 days and the meteoric flare has to burn out sometime? Of course, all the while keeping a watchful eye open to see the 10, 20, or 30% fall for re-entry point. I think the ‘Saulacratic Method’ might line up more here.
I understand final decisions are personal and individual. However, what are some rules that govern these decisions for some of you FoolaSaulus types out there?
FWIW as a discussion,