2 thoughts on “Apparently the Strategy is to Buy INTC at $19 and sell at $22?

  1. I evaluated a trading system like the one Suttmeier describes. The portfolio is limited to “investment grade value stocks.” Basically, you take profits of roughly 10% as soon as they are available. However, if the stock declines, you hold on and maybe even add to your position. If something changes fundamentally – dividend cut, ratings cut – you sell. “Working capital” – not equity – is what keeps score. Your portfolio equity can be in a freefall but at the same time your “working capital” can grow from dividends, interest and realized trading profits.

    That last part seems like a way to stick one’s head in the sand and pretend that the market value of your portfolio doesn’t matter.

    Interestingly the guy who developed this system is an advocate of getting rid of mark-to-market rules for banks.

  2. Suttemeier conveniently fails to mention how his approach worked on Enron, Citi, Lehman, AIG etc. etc.

    He has no exit plan whatsoever.

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