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No. of Recommendations: 2
First, nVidia has gotten slammed over technology problems that certainly could not be predicted by watching financials. The problems are with their newest line of consumer products. The new cards are not a sufficiently large improvement over existing cards. Second there were "infant mortality" problems with the 2080 and above. Finally, there is very slow uptake of ray-tracing in new games. (Ob. warning: don't flame me if you don't think these problems are serious, or should not have affected the stock. I'm just reporting.)

On a more general subject, the way to make money in the stock market is to buy low and sell high. Judgement is required to determine what constitutes low, and it is emotionally very difficult to sell high. If you can't do both, buy mutual funds and stay out of the (individual) stock market. If you want advice on how to determine what is low? Get a list of 365-day lows on the NYSE or some other market. Cross out those where you can't understand the business that they are in. You don't have to understand the details, but there are many companies where you won't understand where their profits are expected to come from. On lists of lows, those are toxic. As for selling high? I've done very well by picking a high value when I buy the stock, and sticking with it. (Although I recently bought put options in AMD rather than selling directly.)

Oh, another interesting rule I use. Look at what would constitute good news or bad news for the company's stock. If good news won't improve the stock price? Don't buy. If bad news can't drive it lower? A potential buy.* Obviously, if you buy using this rule, and good news causes a 50% (or higher) bounce, sell. Now bad news can hurt.

* If you think that bankruptcy is possible, look for senior debt. (Bonds) Now if the comany goes under, sell the bonds after a week or two. Or even, if you like to walk on the wild side, buy more. If you picked wisely, you may even make a profit--in the first couple of days, banks and other institutions that can't hold such assets will be selling. But in general, the jackals (lawyers) will walk away with all the money if the company never comes out of bankruptcy. In other cases, a company may have not been bought out because of toxic assets, such as potential environmental costs. Such companies may be worth buying, and the money will go to lawyers and senior bondholders (you).
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