TRE, Sino Forest. Monkey see, monkey do!

TRE July 4 2011

So Muddy Waters killed the stock and Wellington has reignited it. Neither is exactly true but it does show how totally mindless investing is. I recommended this stock a fortnight ago (that is 14 days!) at , say $3, you could have bought it their or even 40 cents or so lower. Today you can sell it for $4.50 for a gain of at least 50%, which,  by the way, is 1250% per annum not including compounding. The stock may go higher yet but right now the correction from the lows looks a lot like an a-b-c. As mentioned in my previous blog, this could – repeat, could – simple be a fourth wave. Time will tell but if it is, a 5th down should follow and you can do the whole thing again.