Many people say that “since analyts were positive but this stock fell, this is evidence against all the analysts”. I adopt a different perception…
- go to any site listing the biggest losers for the day (or the week?)
- Now go through a 10-min due diligence on each name
- is it a household name? More familiar names are slightly easier to assess
- check analyst rating. If no rating, then stand aside. If you see a positive analyst rating before the drop, then the drop may imply that the price is even more attractive than when ratings were published.
- check CDY after the fall
- (time consuming, so do it last) check fool.com to see why the sudden drop
- for the 1 or few surviving items, pre-clear.
Most of the time, CDY would be way below 4%. This is a harsh reality. Therefore, babysitting might be required. No buy-n-forget.
Half the times, quantum would be more than $50, and requires fractional. This is a harsh reality.
Beware the infatuation… A wrestle of greed vs fear.
— FSM also lists biggest losers. Used for a year. No analyst rating ! No news articles explaining the drop.