Can Now Divulge That Stock and Who Recommended It

[Evan]

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Evan,

As a general rule, people are taught not to place any value in tips received. Alone this is a bad rule, and David is pointing out one instance where having a read, might give you reason to actually listen.

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You're a fool if you'd take a tip from someone after they hesitated and turned around but not if they just told you outright.

Regardless, acting like this thread is any more than an exercise in David slobbing his own knob is just silly.

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I'd rather give thoughtful consideration to the wisdom of experience, than be the fool who immaturely didn't think there was anything to be learned from David and his finance related threads.

There is alot of experience in this forum, and Evan, it would be good for you to talk less and listen more, based on the almost total lack of practical knowledge displayed by your posts here.

Evan, in this forum, your arrogance is going to cost people money!

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I hope it doesn't shock you to find out that I have absolutely no interest in your advice on how/what to post. I really doubt that my posting has ever cost anyone money, afterall, I wasn't stupid enough to tell people that they can compound 1% per day.

Edit: Also, can you expand on the practical knowledge I've displayed a lack of? Thanks.

[Sniper]

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Evan,

As a general rule, people are taught not to place any value in tips received. Alone this is a bad rule, and David is pointing out one instance where having a read, might give you reason to actually listen.

[/ QUOTE ]
You're a fool if you'd take a tip from someone after they hesitated and turned around but not if they just told you outright.

Regardless, acting like this thread is any more than an exercise in David slobbing his own knob is just silly.

[/ QUOTE ]

I'd rather give thoughtful consideration to the wisdom of experience, than be the fool who immaturely didn't think there was anything to be learned from David and his finance related threads.

There is alot of experience in this forum, and Evan, it would be good for you to talk less and listen more, based on the almost total lack of practical knowledge displayed by your posts here.

Evan, in this forum, your arrogance is going to cost people money!

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I hope it doesn't shock you to find out that I have absolutely no interest in your advice on how/what to post. I really doubt that my posting has ever cost anyone money, afterall, I wasn't stupid enough to tell people that they can compound 1% per day.

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Just another example that proves my point! [img]/images/graemlins/cool.gif[/img]

[Evan]

An example of how I'm costing people money? Because I don't want to take advice on what I should post from a guy that I'd prefer never posted here again? Sorry, I'm not following.

[kyleb]

evan,

i have a hard time understanding the other idiots in this thread as well. you are not alone.

[Evan]

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evan,

i have a hard time understanding the other idiots in this thread as well. you are not alone.

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The emperor ain't got no clothes.

[mikecrooks]

Evan is so obnoxious I avoid posting in this forum for the most part.

[Evan]

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Evan is so obnoxious I avoid posting in this forum for the most part.

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Keep your complaints in ATF. I don't care if you want to crap up a forum by whining because I was mean to you or something, just don't do it here.

[SlowHabit]

This thread is still around?

[OrangeCat]

Never bet on a tip. Never.

I'm surprised at you David. I thought in all your years as a horseplayer you would have learned that.

[Scorpion Man]

I finally read this thread. As an aside, I just checked my records and I owned SAPE in the time period that David mentioned, buying it as low as $0.72 on June 2002 and selling it as high as $7.10 in February 2004 (note, these were not average prices, they were best prices). I mention this because it was not hard to see that SAPE was a good idea fundamentally - you did not need a "tip".

I would say a few things - the stock was very cheap and had, at the time David heard about it, probably over half of its market cap in cash. It was also going through some changes that exposed it to a very interesting end market, if memory serves.

I think Evan had it right earlier. A tip like this is a great reason to go do some work. I would be more likely to look for what could go right than what could go wrong. I would also attempt, if possible, to get some sort of "why" out of the guy with a follow up phone call. If I guy can't tell you why...you really should not be buying the stock on his word alone, patented turnaround/hesitation or not.

One point on the turnaround/hesitation. I have, in my own way, done this many times. But it generally does not mean what David thinks it means, coming from me. It might mean its an idea I like, but I dont want to have responsibility for getting him out. It might mean its illiquid, and I don't want any company. It might mean I want to tell him to buy it, but I am not going to be in contact with him and I am thinking they might have a bad quarter first and have not decided to buy it now or later. It might mean I just got off the phone with that company so they are more top of mind. It might mean that a friend told a friend told me and it sorta sounded good and I am currently excited about it but don't really know what I am talking about. There are about 10 other things it might mean as well. More often than not, it means I don't want the responsibility of giving someone an idea that does not work...but it does not mean I have any other edge on the idea other than my general stock picking prowess, which is not the kind of "you gotta be crazy not to buy it" situation to which David alludes.

To me, taking a tip like this with absolutely no sense of why its being given to you is a mistake. The biggest subset of true "edge" info is that a company is about to be taken out...I would not want to be a buyer on this tip. Otherwise, oftentimes its someone who is well meaning but does not really have the edge they/you think they have. I don't care if the guy was a multi millionaire and smart. David implied in his original post that Jay was relatively new to stocks. Half the time people like that don't even understand the implications of whatever information they have.

The other significant issue that I run into very frequently is that people change their minds and don't tell you. This is a HUGE problem with "tips". I have had top level hedge fund guys slobbering over ideas and then change their minds not long afterwards and i was left holding the bag (this was when I was on the beach and doing no work at all, just taking tips).

Lastly, pretty much the entire Russell 2000 went nuts from early 2003 on. The Russell traded at 350 in Feb and March 2003 and was at 650 in Dec 04. The small cap hedge fun I was invested in was up 75% from March 03 to December 03. It was a time where any tip like this worked.