Just A Little Lower

I’m still waiting to fill my order to buy Sun at $3.40. The stock closed last week at $3.49 after getting as low as $3.45, but hasn’t made it down to my buy price yet. This morning, the market opened higher and Sun rose to $3.56 in early trading. If the market takes a sudden wash-everybody-out spike downward, I want to benefit. That’s why I’ve set the price on Sun so low. Buying at $3.50 would be fine, I’m sure, but I still think we can save the extra dime.

If it’s all up, up and away from here, we’re positioned well for that, too. My decision to hold on to Ultra Semi rather than sell it at a small loss a month ago is looking wise. While we closed last week down some 9%, that’s well off the lows of the past couple of weeks and the fund is reacting nicely to any upside technology moves — by design, of course.

The place where the more conservative among you might want to put money to work is in Double The Dow. That investment is down 12% so far this year, but has a remarkable history of recovering from such situations. In fact, that’s how the Dow works. It’s made up of the world’s strongest companies and the best way to profit from them is to buy when they’re down. Value investing works against such large, well-established firms. Anytime you can get in at a 10% discount or more, staying for the long haul has proven profitable. You can track my Dow investments on my Strategies page.

If you’ve read my stock book or visit this page on a regular basis, you know that I’ve recommended Budweiser brewer Anheuser-Busch on several occasions. I was pleased to note that the legendary Warren Buffett has finally taken my advice. Anheuser-Busch announced last Thursday that Buffett is now a major shareholder. Talk about being in good company. You can learn more in the BusinessWeek story.

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