A Great Way to Blow a Stock Call
I blew a stock call. It doesn't happen too often, so when it does, I get really, really mad.
The hours upon hours of research put into coming to an informed conclusion to articulate to a client. The broken record line of "Be there in a second, hun, I just have to read this last 10-K line," only to realize a second has morphed into an hour and a cold dinner. All of these things, honestly, only give me a better opportunity of scoring a mega win for a client, not outright guaranteeing a successful outcome. I could claim that the blown call to short Brinker International (EAT) in early July was not blown because I tend to be early in the selection process (cut the loss at 5%, or so). While I continue to believe many of the aspects to Brinker's stronger-than-expected quarter are at risk in the second half of 2012, specifically the upside sales into the teeth of rising gas prices and fiscal cliff, the fact is that the stock is doing the opposite of what the hours of research said was probable. But there is an interesting facet, the common thread to most blown stocks calls: the research was flawed....346 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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