The Deipnosophist

Where the science of investing becomes an art of living

My Photo
Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

28 May 2008

Quickie update re Qualcomm/QCOM

Eric Savitz (Barrons' West Coast Editor) seems startled by Qualcomm/QCOM's recent share price strength...

"... shares are up sharply today, perhaps getting a boost from..."
"Perhaps"...? Hmm, ya' think? Stock prices move, and (only) then do journalists seek explanations and justifications. Meanwhile, readers and investors of this blog were prepared for this price move... and with more upside price action yet to occur. Please note the crucial difference between investors and journalists: Investors invest in advance of price moves, whereas journalists explain price moves retrospectively. (Well, attempt to explain.)

Eric Savitz's 'analysis' does include one crucial item, although he fails to note it as such:

"[Lehman chip analyst Tim] Luke’s note today is just the latest of several bullish reports on the company that have been published in the last few days."
Apply the notion of critical mass, and you have an inflection point, a moment when things change. Such as a stock that has traded sideways for a long while and thus lulls into inaction possible investors.

But not you.

Full Disclosure: Long Qualcomm/QCOM
-- David M Gordon / The Deipnosophist

Labels: , , ,

who's online