Thursday, November 4, 2010


My previous guidance on China Security and Surveillance has been verified.  The stock dropped for only 2 days after its earnings announcement, showing that many market participants knew it may miss earnings numbers and that expectation was already priced into the stock.  After those 2 days it has been climbing in price again.  We are still $0.60 / share off the price before the earnings announcement, which is about 10% on a $6 stock, but the future is still hopeful for this stock and I will be hanging onto it as a part of my portfolio. 

Because this is a volatile stock with high risk and high reward potential, it should be just one part of a well-diversified portfolio.  Even if you like growth stocks and can handle greater volatility like I do, you never want to put too high a % of your money in any one stock or fund, lest that security turn out to be Enron or Worldcom.