Stocks in review: Timminco and Wi-Lan
moneyrelations :: Sep.25.2007
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Almost three months ago, I bought 2 revenge stocks. Why do I call them revenge stocks? You can read the whole story here but basically, I gambled on something after taking beating. I gambled on Timminco (TSX: TIM) a producer of high-grade silicon that goes into solar cells and Wi-Lan (TSX: WIN), a patent licensing company.
Timminco has done quite well and I have doubled my money. This also covers my 42% loss in Wi-Lan. Right now, I’m thinking of exiting my positions to walk away with a profit - never a bad decision. But would I be selling too soon?
I waver back and forth because I have no exit strategies even though neither companies are in my buy and hold forever plans. I do not know about the businesses so I have no target expectations. I wouldn’t be able to tell the difference between a patent and a geek’s blueprint for the Starship Enterprise. And although I own a solar powered calculator, it hardly makes me an expert in solar grade silicon. It’s hard to invest in businesses you don’t understand and these small cap stocks don’t offer much in terms of historical data. What little there is, is bad.
Finally, what concerns me mostly is all the press Timminco is gathering. When so many people are frothing at the mouth, it’s time to get out.
Look at the chart and the run up from March and a 52-week low of 23c. This is for selling out the annual silicon production even though the refinery is not fully operational? I think the contracts have been priced in and I’ll wait for the real results of full production capacity in Q2 2008. I’m sure I can get back in on a pull-back.
Investing ::
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ha! Are you a betting woman? lol - ’cause my money’s still on TIMM. They’ve got solid contracts under their belt, and demand for silicon is only going to grow, plus it’s even got a ‘feel good’ factor - green- solar energy etc. If I double my money yet again by next spring (end of March) will you post links to my blog everywhere, ceding my point? (kidding. just kidding. sorta.)
Nancy, I’m trying to reform
I think TIM is still a good play as for all the reasons you mentioned but I think it’s a little overheated. I went through that phase with Tahera. The diamond industry was hot, mine was about to open but no earnings. Apples and oranges but I’m just concerned when the plants aren’t in yet.
I think I’m just going to put in a stop order at around $12 to lock in profits. If it goes higher then so be it, if not, I’ll get back in