The Deipnosophist

Where the science of investing becomes an art of living

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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!

19 June 2012

Stupid, stupid, stupid

Sure, I am long the stock, and know a higher price will occur soon. But leave apart the writer's and my dueling banjos perceptions of the same stock, and think on his imbecilic recommendation...

Short Heinz/HNZ at $55, with a stop loss at $61.73, or 12.23% Your profit objective is $51.63, or 6.12%... $6.73 of risk, $3.37 of possible profit. In essence, an abomination of the typical relationship between risk and reward.

Did I say stupid? I also mean misguided, irresponsible, and wrong. Horribly wrong.
-- David M Gordon / The Deipnosophist

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