Personal Disclaimer: Investing in these ideas should be done with a small part of your portfolio (maybe not at all), or as I call it “fun” money. All “real” long term retirement investing should be done so in low cost mutual funds. In my opinion Vanguard.

 

One of the key ideas I have for this site is to discuss companies that would make good investments. I don’t mean the talking bobble-head investment talk on CNBC and yahoo finance, but some ideas that will triple or more in a couple of years.

 

Personally I’ve has some success in this area, but I don’t call it investing, it is speculation.

 

First, my favorite story. Around February 2013 I got the idea that the US housing market is so dependent on Fannie Mae (FNMA) that the government could not shut them down, even if they wanted to. Don’t get me wrong the smart money said this was a bad investment. At the time the stock was trading around $0.28/share. I merely looked as this as a what-the-hell. 1,000 shares were $280 and I bought them. At the time I was thinking I would hold his investment ten years the past would become a memory and the shares would go to $20/share. To my surprise the shares sky-rocketed to $3 in May of 2013, too much too fast for my comfort. I did not want to pay short-term capital gains so I held. They dropped back, but soon took off again. This time I stated ratcheting up a stop loss sell order so they would sell at $2, later $3, and seems like just days later $4. The shares peaked about $5.30 and my stop-loss exited soon after at $4. So in just over one year I made $3,720 and bagged my first 1,000+% return.

 

Cool but I’ve not repeated in three years.

Another story, Inuvo, Inc (INUV). I don’t remember how this stock came onto my radar but I remember an article that detailed a company that was closing both its New York and Florida or perhaps California high rent offices and moving everything to Arkansas. The historical chart on this company is interesting and they had recently performed a reverse 1:10 split and were in jeopardy of being delisted from the NYSE. The article said just by moving from the high rent area’s to a low rent area the company would post positive earnings per share the next quarter. This seemed logical and I purchase 800 shares at $0.80 in 2013. Sure enough the next quarter EPS was positive and the shares pass the $1 mark ending the threat of delisting. I saw the stock hit $3 and considered selling, but listened to a few conference calls and wanted to wait another quarter. I still have this stock in 2016, I don’t believe it has hit $3 again but the prospects are interesting. I think if they hit $3.50 at any point this year I will exit.

 

I have a problem with selling. I do pretty well on entry points, but I never want to sell. So far that has severed me well.

 

My second favorite story is Buffalo Wild Wings (BWLD). A long time ago … either 2006 or 2007 I had my first Buffalo Wild Wings experience at a city in Texas. This place was amazing! A clean sports bar with good food. I was reading a lot about investing at the time and wondered if the company was listed. Sure enough, shares were in the $35 range and I bought 20. This place was neat. In hindsight I wish I had more money but with a small portfolio $700 gave it a BWLD tilt. They have since split 2:1 have peaked around $250 a share and trade today around $140, down from $200 earlier in the year. A 700% gain in ten years. At this time I still like the company, its growth plans, and have no intention of selling in the foreseeable future. If I knew everything of course I would have sold at $200 and bought back in, but I don’t believe in that level of timing. I know I just don’t possess those skills (luck). However while the past ten year increase makes it easy for me to hold it inhibits me from buying more. I think $140 is a good buy in point, but I can’t recommend or act on it. I only think of the shares I purchased for $17.50 each.

 

What can you share? Any fun stories from your past? Any stocks you like now?
Mr. Big