In Search of the Perfect Investment

An inviolate stop loss rule? Makes sense most of the time.

Yesterday JPMorgan slammed CYBR (CyberArk Software) saying it was overvalued compared to others in the cybersecurity space. CYBR dropped immediately by 9%, then fell further. Though I feel comfortable with the stock, I let my inviolate stop loss rule kick in and I sold it at $58.94. Look what happened:

Dumb decision? Yesterday I felt confident in the company.  I still do. But JPMorgan is right. It is overvalued.

My goal will be to buy it back when it gets cheaper. Meantime, I made a handsome profit on CYBR.I’d bought it at $43.65.

I don’t believe in “trading” stocks. But you really don’t have much choice with tech stocks that do parabolic ascents and stone-line drops.

This is CYBR over the past year. The previous chart is just two days:

Larry Fink, the CEO of Blackrock, the world’s biggest investor, was on Charlie Rose last night. Fink was very positive. He always is. He travels the world, checking on the “macro” picture. He especially loves India.

You can’t watch his interview because Charlie Rose doesn’t post his interviews for several days. (Why? Who knows.) I record them automatically on my Verizon FiOS PVR and then watch them remotely over my Slingbox, which is the greatest invention since sliced bread for watching your TV when you’re out of town. The best news with Slingbox is that it’s the ONLY (or one of the very few) pieces of your TV watching which doesn’t charge an outrageous monthly fee. It’s a one-time price of under $100.

Have you visited your local Staples? What a depressing, badly-organized, inventory-short place. I t reminds me of Radio Shack before the final days. The only way to shop Staples is online. I bet Amazon will eat their lunch on that front, too.

This tax season is gruesome. But the good news is there is better tax software and everyone is using it. For more, check out this New York Times piece “Better Software Lets You Kick Back and Do Your Taxes.” Click here.

It’s 8:00 AM in California. Time to hit some balls.

Harry Newton whose friends every day send him “fantastic” photos. Here’s where the Great Wall of China ends. Click on it (touch it) to see its full size.