Blogvesting

Nowadays, every stock seems to be trading not based on their fundamentals, but based on the fear that the economy will sink into a depression. If indeed this fear proves to be true, then buying stocks now would be a mistake. In the Great Depression of the 1930s, US GDP shrunk by 27%, pushing the [...]

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Kapstone Paper (KPPC) is a microcap paper company specializing in the production of kraft paper, the strong brown paper used for packaging and paper laminating applications. Kraft paper is made into grocery bags, consumer packaging for flour/sugar/pet food etc., industrial packaging for fertilizers/cement/dry chemicals etc, wrapping papers (the kind found around a burger at a [...]

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Now that my entire portfolio is underwater, I am resigned to holding most or all of my positions for the next 1-2 years. However, due to the dramatic upswing in volatility recently, many options are now priced at incredibly expensive levels, especially the puts. While I wait for the market to recover, I have decided [...]

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In the past month, I have increased my exposure to the stock market, primarily in the technology sector, only to see my positions decimated. Stock prices now seem completely divorced from fundamentals. Even companies with substantial cash reserves and well-positioned to ride out the economic storm are now trading at below cash value. To quote [...]

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