Q: Reading the Gilmo Report I sometimes get what I call the “candy store syndrome”; so many candies to choose from, so which do I buy? Since there are so many great stocks that you feature, which do I buy if I can’t buy them all?
G: I actually trade in and out of 10-15 stocks in my concentrated portfolio, 20-30 in my diversified, and I do think it’s more a matter of letting the market tell you which is “the stock you have to own,” as I don’t consider it something I can determine beforehand. I tend to shift around a bit, but keep some core positions. right now biggest, “core” positions are VMW, MTL, SOHU, and CSIQ, and I just bought MTL and VMW back this morning off the open. It is possible I could sell anyone of these today or at some time in the next few days if they start acting improperly, so please keep that in mind.
You have to find the right buy points, and I don’t think it’s only “5 stocks you must own now” since there are a lot of interesting situations showing up right now (May 15, 2008 – Ed.). Most of the original breakouts are somewhat extended, but I will cover these stocks in my report when I think they are approaching proper entry points. Going forward I will do my best to give some insight into what I believe makes a stock a “must own” rather than try and pick a handful of “must owns,” since that can change very quickly. Our ultimate goal is not to spoon-feed you, but rather to empower you. So we don’t want to give you a fish, but rather teach you to fish.