Five years ago, in May 2007, I posted my first article on GuruFocus. It was called, ��hy Do We Sell Low and Buy High?��and it described some of the mistakes that we commit as investors.
We all know the depths that we went through since May 2007. For many people, fear was all they felt (and some unfortunately still do). Many investors committed the same mistakes (as well as others), and many people who have committed their hard-earned money without knowing the basics of investments have ended up frustrated, fearful and with unsatisfactory results.
I decided to use my first article and make it into a book. Hopefully the book will help to answer the question ��hy do we sell low and buy high?��and many other questions, as well as teach the reader about the basics of the stock market, its participants and provide checklists and insights that will enable the reader to build a framework to become a better investor.
I appreciate all the insights and wisdom that I have received reading many articles on GuruFocus and I am re-posting the article (which is now the first chapter of my book) as well as the second chapter. I hope you all enjoy.
Why do we sell low and buy high? Part 1
We��e often told that in order to be a successful investor we need to buy stock at a low price and sell it at a higher price. If we do that multiple times, we are destined to be rich. Why is it then that so many of us do the exact opposite?
Best Low Price Companies To Buy Right Now: Qualstar Corporation(QBAK)
Qualstar Corporation designs, develops, manufactures, and sells automated magnetic tape libraries used to store, retrieve, and manage electronic data primarily in network computing environments worldwide. Its tape libraries consists of cartridge tape drives, tape cartridges, and robotics to move the cartridges from their storage locations to the tape drives under software control. The tape libraries also provide data storage solutions for organizations requiring backup, recovery, and archival storage of critical electronic information. The company also offers ancillary products related to its tape libraries, such as tape media, tape magazines, cables, bar code labels, and fiber channel adapters. In addition, it designs, develops, and sells switching power supplies that are used to convert alternate current line voltage to direct current voltages for use in electronic equipment, such as telecommunications equipment, servers, routers, switches, lighting, and gaming devices. Qualstar Corporation sells its tape drive products primarily to value added resellers and original equipment manufacturers, as well as switching power supplies primarily to original equipment manufacturers, contract manufacturers, and distributors. The company was founded in 1984 and is headquartered in Simi Valley, California.
Best Low Price Companies To Buy Right Now: Target Energy Ltd(TEX.AX)
Target Energy Limited engages in the exploration, development, and production of oil and gas in the United States. It holds a 50% interest in the Buffalo project covering approximately 13,000 acres located in south Texas; a 60% interest in the Fairway project covering approximately 1500 acres situated in west Texas; and a 35% interest in East Chalkley Oil project in Cameron Parish, Louisiana. The company also holds oil and gas interests in Merta Gas Field in Wharton County, Texas; and the Wolfberry play in western Texas, as well as in St Martin Parish, Louisiana. Target Energy Limited was founded in 2006 and is based in West Perth, Australia.
Hot Tech Stocks To Own Right Now: Patni Computer Systems Limited(PTI)
Patni Computer Systems Limited, an information technology (IT) services company, provides a range of IT services through integrated onsite and offshore delivery locations. Its services include IT strategies development, system consulting and design, application development, application maintenance and support, packaged software implementation, quality assurance, infrastructure management, business process outsourcing, IT outsourcing, and OSS and BSS systems deployment services. The company offers IT services primarily to customers in insurance, manufacturing, retail, distribution, financial services, communications, media, and utilities industries. It also offers product engineering services, including engineering design and modeling, electronic design, embedded software development, and product lifecycle management for legacy products, as well as testing and migration services for new technologies to clients in electronics, automotive, medical electronics, industrial auto mation, office automation, handheld/mobile device manufacturing, and semiconductor manufacturing industries. The company operates in North America, Europe, India, and Japan, as well as in the rest of the Asia-Pacific region. Patni Computer Systems Limited was incorporated in 1978 and is headquartered in Mumbai, India.
Best Low Price Companies To Buy Right Now: Trifast(TRI.L)
Trifast plc, together with its subsidiaries, engages in the manufacture and distribution of industrial fasteners and associated components. Its fasteners include machine screws, self-tapping screws, thread forming screws, socket products, nuts, and washers, as well as fasteners for sheet metal, fasteners for plastic, security fasteners, thread-locking nuts, and micro-diameter fasteners. The company supplies its components in steel, stainless steel, aluminum, nylon, brass, titanium, and other corrosion resistant materials. In addition, its products comprise cables, clips, plastic parts, connectors, switches, springs, batteries, hinges, levers, handles, brackets, hooks, pins, keys, spacers, and stays. The company primarily serves the aerospace and defense, audio visual, automotive, marine, petrochemical, railway, information technology, sheet metal, medical, home appliances, electronic, electrical, plastic moulders, telecom, general industrial, and renewable energy sectors. It operates in the United Kingdom, Norway, Sweden, Hungary, southern Ireland, Holland, Poland, the United States, Mexico, Malaysia, China, Singapore, and Taiwan. Trifast plc was founded in 1973 and is headquartered in Uckfield, the United Kingdom.
Best Low Price Companies To Buy Right Now: TAL International Group Inc.(TAL)
TAL International Group, Inc. engages in the lease of intermodal containers and chassis. It operates in two segments, Equipment Leasing and Equipment Trading. The Equipment Leasing segment involves in the acquisition, lease, re-lease, and sale of various intermodal transportation equipment, such as dry freight containers, which are used for general cargo, including manufactured component parts, consumer staples, electronics, and apparel; refrigerated containers that are used for perishable items, such as fresh and frozen foods; and special containers, which are used for heavy and oversized cargo, such as marble slabs, building products, and machinery. It also leases chassis, which are used for the transportation of containers and tank containers that are used to transport bulk liquid products, such as chemicals, as well as finances port equipment, which includes container cranes, reach stackers, and other related equipment. The Equipment Trading segment purchases container s from shipping line customers and other sellers of containers, and resells these containers to container traders and users of containers for storage or one-way shipment. As of December 31, 2009, it had a fleet of 701,946 containers and chassis, including 31,137 containers under management for third parties, representing 1,139,523 twenty-foot equivalent units (TEU). The company was founded in 1963 and is headquartered in Purchase, New York.Advisors' Opinion:
- [By Seth Jayson]
Margins matter. The more TAL International Group (NYSE: TAL ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong TAL International Group's competitive position could be.
- [By ABN]
TAL International Group (TAL) is one of the world's largest lessors of intermodal freight containers for the shipping business with 17 offices in 11 countries and approximately 230 third-party container depot facilities in 40 countries. TAL's fleet consists of approximately 1,238,000 containers and 2,031,000 twenty-foot equivalent units (TEU).
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, freight container lessor TAL International (NYSE: TAL ) has earned a coveted five-star ranking.
Best Low Price Companies To Buy Right Now: Carlton Investments Ltd(CIN.AX)
Carlton Investments Limited engages in the acquisition, and long term holding of shares and units in entities listed on the Australian Stock Exchange. The company is based in Sydney, Australia.
Best Low Price Companies To Buy Right Now: Vangold Resources Ltd. (VAN.V)
Vangold Resources Ltd., a development stage company, engages in the identification, acquisition, and exploration of mineral properties. It primarily explores for gold, copper, silver, nickel, platinum, and cobalt ores. The company is also involved in the exploration, development, production, and marketing of crude oil and natural gas. It holds interests in mineral properties located in North America, Papua New Guinea, and Uganda; and holds oil and gas concessions in Armenia. The company was founded in 1978 and is headquartered in Vancouver, Canada.
Best Low Price Companies To Buy Right Now: Capstone Turbine Corporation(CPST)
Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration combined heat and power (CHP), integrated (CHP), resource recovery, and secure power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company primarily offers microturbine units, subassemblies, and components. It also provides various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for multipacked installations, and protocol converters for Internet access, as well as frames, ex haust ducting, and installation hardware. Further, it remanufactures microturbine engines; and provides after-market parts and services, scheduled and unscheduled maintenance, and factory and on-site training services. The company?s microturbines can be fueled by various sources, including natural gas, propane, sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It primarily sells its products directly to end users, as well as through distributors in North America, Asia, Australia, Europe, the Russian Federation, and South America. Capstone Turbine Corporation was founded in 1988 and is based in Chatsworth, California.Advisors' Opinion:
- [By Selena Maranjian]
Fisher reduced its stake in lots of companies, including Capstone Turbine (NASDAQ: CPST ) and Nokia (NYSE: NOK ) . Capstone is a smallish company, making low-emission microturbines used in power generation. Its top line has been growing by double digits over the past few years, and it's poised to profit from huge interest in shale oil, but it remains in the red. Still, it has recently announced a bunch of promising deals and some think the many folks short the stock will end up burned.
- [By Tyler Crowe]
What:�Shares of Capstone Turbine (NASDAQ: CPST ) skyrocketed 13.59% as the company announced that it had signed a major supplier deal with private real estate and investment firm Related Companies. Shares of Capstone haven't been this high in over a year.
- [By Dan Caplinger]
On Thursday, Capstone Turbine (NASDAQ: CPST ) will release its latest quarterly results. But lately, investors have already anticipated some huge results from the company, having bid the shares up by about 50% in just the past several weeks. Can Capstone deliver on what investors want to see?
- [By Dan Caplinger]
Beyond the fundamentals, though, news plays an important role in short-term stock movements. Outside the Dow, microturbine producer Capstone Turbine (NASDAQ: CPST ) soared 8.8% after receiving its second large order in the past week. After getting word of a purchase from real-estate and investment firm Related Companies on Tuesday, Capstone got an order today from Southern California Gas to buy three of its C65 uninterruptible power-source units for use at the gas company's data center. Given the relatively small size of the business, which sports sales of only about $122 million over the past year, orders like this have a material effect on Capstone and also draw the attention of other prospective buyers.