Answering Questions

There was a recent comment on one of my posts that I was lazy about replying to comments. So, I’m replying to a couple of comments that have been posted on this blog.

There have been a couple of posts regarding my recommendation on Partygaming. The posts state the following:

1.) Partygaming has lost its U.S. players.
2.) Everybody is selling it (including large institutions) and that's why it's going down.
3.) Partygaming is not a safe investment because it’s going down.

Here is my reply to these 3 statements...

1.) Everybody knows this and my valuation of Partygaming do not take into account the U.S. players
2.) Who cares is if everybody is selling it and usually stocks go down when people are selling.
3.) Just because a stock goes down, it doesn't say anything about the risk of the investment.

Now some people who are posting comments are missing the point of this blog and the point of value investing. Value investing is about making logical, rational decisions. Value investors profit when other investors make emotional decisions. The people who posted comments gave no real reason why they think Partygaming is a bad investment, but simply stated that it will go down because other people are selling it or that U.S. players are not allowed to play on the site. In fact, I see Partygaming as the perfect value play. Luckily, I was able to add 15,000 more shares at .5575c this week. This is in addition to the 8,000 shares I bought at .74c. I will try to buy more.

The other question was on currency trading. Now I am not smart enough to do currency trading. If you feel you have an edge in currency trading, then by all means go for it. If I did currency trading, it would purely gambling on my part. Long term currency is affected by many factors such as the health of the economy, interest rates, etc… I am not a macroeconomic expert and neither are most small investors. So, I would leave currency trading alone. Why would you do currency trading when stocks are so much easier to pick???