Timing
I have never been good about timing the market. My recent posts, buy financial companies and sell UEC (Uranium Energy Corp) have not performed as expected so far. (It has only been a couple weeks so far.)
Financial companies have continued to feel pressure from the mortgage crisis prompting further selling. This has only made these companies cheaper. Before they were on sale; now, it’s closer to a liquidation sale. I will continue to invest in this area.
My recent recommendation to short UEC based on the fact that they have no revenues, are losing money hand over fist, and will likely continue this pattern for the next year or so, has also not performed as expected yet. The stock is slightly higher than where I sold it short.
Again, I am not changing my opinion. UEC’s board recently approved an increase in pay for the CEO, despite posting record losses over the last year. I still believe the company will continue to bleed red and will continue to reward executives — at the expense of shareholders — despite the lack of performance.
In the long run, we will see whether my current valuations are correct. In the meantime, I’ll continue to reflect on my uncanny ability to mistime the markets. Of course, in the end, I’d much rather mistime than misvalue.
