The Man Who Buys Crashesthat crashed to one. One of my biggest wins was TradeStation,
which I bought for 1.02 and ended up selling for$12. Another was
AES, a big power company that’s used to be$60 a share and was
down to$1. I got a five bagger out of that. Another one was Dow
Corning. It got over 100 and came down to a dollar, got a seven
bagger out of that. Now it’s over 20.
Q: That’s fascinating.
A: Yes. There is nothing better as a trader than to see what you
think is going to happen actually happen. The market is humbling
to all though. My best results come after rough periods, where I
literally pray to God and ask Him for help and tell Him if things go
right, it’s not me. The worst results follow periods where I decide
I am really good at this and have figured out the markets.
Q:Whatisyourbesttrade?
A: That’s easy, it was this year. Saw PTSC on a deep value
scan—magicinvestingformula.com—and loved the huge cash
position, no debt and high profits, bought some at .08. near New
Years 2006. It exploded almost immediately, and by March sold
the last of it on the high day at 2.10 for a 26 bagger! I wish I had
bought more of it.
Q: Let’s change tact. You told us the best trade. Now tell us the
most painful trade?
A: [laughter] Yeah there’s been several. My worse trade in terms
of losing money in a short period time was TMR. I ended up
walking away from it with a profit, but this gets back to the issue of
company management. It was an oil/gas driller down in Louisiana.
They had a tremendous new field find and they hit this well. I
think it was 33 million cubic feet a day [laughter]. I already had
a position in at a dollar, and I saw the press release come across