Settling a Dispute

Sometimes, we need to go backward in order to move forward. In this case, I am going back to a small debate that flared up Friday while I was sitting in for Doug Kass on the Diary. Two names are very prevalent on the Diary right now -- Altisource Asset Management (AAMC) and Altisource Residential (RESI) -- and rightly so. These two have been fantastic performers. In fact, year to date, Altisource Asset Management is the best single best-performing stock with a current market capitalization above $1 billion. But, performance aside, three issues were brought to light: a technical view, a fundamental view and a practical view.

Let's first look at the practical view. Does trading a stock matter in analysis? I would say the answer here is both "yes" and "no." I don't believe you have to trade a stock in order to do any kind of analysis, be it fundamental or technical. Some analysis, in fact, will keep you away from ever buying or selling a certain security. Sometimes, if analysis results in a conclusion to stay away from a stock, that's the best analysis one could make -- and it could have been made without ever having traded the stock....487 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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