k_babysit4exit

— bbSit4exit .. about the doctrine, the conventional wisdom

— A stock is labelled “babysitt needed (potentially)” if meeting all conditions:

• (at risk of) excessive exposure, oversized .. generally close to $50 (or $100?) However, see speed up: riskCapital4U.S.eq 20k #Aaron
• low div .. below 2%. Hard to buy-n-forget
• often a hot stock, but lacking the long-term trend of MSFT

Classic examples — bccy; FXO; futures

— Many companies are labelled ‘unestablished’:

• they usually pay no dividend if they are even profitable. They need all the cash to grow.
• they often show unstable profits or no profits … a feature of the fast growth “adolescent phase”
• they could show high market cap, up to 100B, but still unestablished.
• they could show a “founded” date 10Y ago, but that’s unreliable. It could be in a very different business.
• They are automatically baby-sitting stocks, unless risk capital < $20.
• — eg:
• Catcha
• beyond meat
• many tech stocks
• some of the bio stocks
• some of the EV stocks
• twitter? no business model
• moderna? proven profitability but no dividend and no long-term trend
• — not unestablished
• coinbase? biz model good
• IBM, HPE, Oracle, GM, GE ..