Is MIC a Buy and Hold Stock?Q: Do you think MIC is a buy and hold stock, because I plan to do so.
Suppose they will get down the drain somewhere this year, am thinking of adding some.
Anyway I bought this stock for a 2nd time for 1.20 this year, so you can imagine
how amused I feel right now.
Btw, I like to read the smarttrend reports and the tweets.
Best regards and keep up the good work.
A: Thanks for your question. From the perspective of trading with a technical system like SmarTrend, there is no such thing as a buy and hold stock, as you can realize much stronger gains on the downside as well as the upside. If you had bought and held MIC anytime before March of this year, you probably would not be in very good shape (SmarTrend's May first $2.75 Uptrend is currently up 90.9%) . The charts below show that while SmarTrend had a few misstep Uptrends in H2 08's severe bear market, a long only strategy with our calls would only be down 1.6%, compared to a 77% loss if you had bought on August 8, 2008. Since the period leading up to March was one of the most powerful bear markets in history, our Downtrend calls performed very well, so a long/short strategy would have yielded 137% worth of gains. MIC remains in a definitive Uptrend, helped by a positive response to today's earnings report. We can't claim that SmarTrend is going to be right all of the time, but as you will see below and with any of our other charts, it consistently catches the big swings. Should the stock begin showing signs of a Downtrend any time soon, SmarTrend could make you among the first to know.