Comments on: China Medical Technologies, Inc. (ADR) (CMED) – Volatility and Profits http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/ Dynamic Investments for Exceptional Traders Mon, 26 Jul 2010 12:25:18 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: borisb http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/comment-page-1/#comment-4935 borisb Wed, 16 Jul 2008 12:26:08 +0000 http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/#comment-4935 CMED is having first dip after running up on an earnings beat. $44 would be a $6 or 12% pullback. The dip is 10 days old and may drag on for a while. Maybe if your position is small, and your know the stock is solid and the market is supportive(????), add into the 11th to 30th day of the dip and bring your average cost down. CMED is having first dip after running up on an earnings beat. $44 would be a $6 or 12% pullback. The dip is 10 days old and may drag on for a while. Maybe if your position is small, and your know the stock is solid and the market is supportive(????), add into the 11th to 30th day of the dip and bring your average cost down.

]]> By: samuel http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/comment-page-1/#comment-4924 samuel Tue, 15 Jul 2008 11:47:52 +0000 http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/#comment-4924 i owned cmed at at $44,00. now $43.16. Please give me some advice. thx i owned cmed at at $44,00. now $43.16. Please give me some advice. thx

]]> By: Zachary Scheidt http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/comment-page-1/#comment-4912 Zachary Scheidt Thu, 10 Jul 2008 20:01:04 +0000 http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/#comment-4912 Mark, - yes that was a pretty big hit for FCSX. It seems the books had much more risk on them than anyone else expected. Surprising to see one of the biggest issues was a loss on hedging strategy. The only reason a hedging strategy should record a large loss is if the overall business is recording a huge gain. That's the nature of hedging. Anyway, yes you're right it was tragic and I'm thankful to not have a long position. This market just doesn't pay to have too much exposure anywhere right now. Thanks for the comments guys! Mark, – yes that was a pretty big hit for FCSX. It seems the books had much more risk on them than anyone else expected. Surprising to see one of the biggest issues was a loss on hedging strategy. The only reason a hedging strategy should record a large loss is if the overall business is recording a huge gain. That’s the nature of hedging.

Anyway, yes you’re right it was tragic and I’m thankful to not have a long position. This market just doesn’t pay to have too much exposure anywhere right now.

Thanks for the comments guys!

]]> By: borisb http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/comment-page-1/#comment-4911 borisb Thu, 10 Jul 2008 16:49:02 +0000 http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/#comment-4911 the diffrence between CMED and CROX is that CMED beats earnings. Now all thats left to do is make sure the story is solid and secure rather then a mirage of $4 eps next year. the diffrence between CMED and CROX is that CMED beats earnings. Now all thats left to do is make sure the story is solid and secure rather then a mirage of $4 eps next year.

]]> By: Mark http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/comment-page-1/#comment-4908 Mark Thu, 10 Jul 2008 14:32:12 +0000 http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/#comment-4908 Zach, look @ that FCSX this morning. Tragic! At some price it must be a good buy but I thought that about CROX in the low teens! Ouch. Zach, look @ that FCSX this morning.

Tragic!
At some price it must be a good buy but I thought that about CROX in the low teens!

Ouch.

]]> By: Zachary Scheidt http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/comment-page-1/#comment-4902 Zachary Scheidt Wed, 09 Jul 2008 13:27:10 +0000 http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/#comment-4902 By risk control, I mean that discipline should be used so that if the position turns sour it does not materially damage a portfolio. Some may choose to use a stop loss to put a cap on what they are willing to lose, others may find selling calls against the position to be beneficial. One could argue that buying puts is helpful, but with the large amount of premium in the options, put protection may be prohibitively expensive. Basically in the current volatile market, positions should be smaller and stops should be tighter. Preservation of capital is the name of the game for now. By risk control, I mean that discipline should be used so that if the position turns sour it does not materially damage a portfolio. Some may choose to use a stop loss to put a cap on what they are willing to lose, others may find selling calls against the position to be beneficial. One could argue that buying puts is helpful, but with the large amount of premium in the options, put protection may be prohibitively expensive.

Basically in the current volatile market, positions should be smaller and stops should be tighter. Preservation of capital is the name of the game for now.

]]> By: borisb http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/comment-page-1/#comment-4900 borisb Tue, 08 Jul 2008 21:40:26 +0000 http://zachstocks.com/2008/07/china-medical-technologies-inc-adr-cmed-volatility-and-profits/#comment-4900 what proper risk control is that? what proper risk control is that?

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