I'm publishing a chart I did on the in and out points for NTRI over the last year or so, ending before the gap that caught Heath in a loss that should have been limited to about 4%.
I want you guys to notice that this stock can ding you even when you are good at this stuff and right on top of it. It's a volatile stock.
If you look at NTRI's chart, you'll notice that the stock itself, as of mid-August 2007, was down about 26% from about a year earlier.
Without good tools, you'd be buying and holding and stuck with a loss. But with tools, if you followed the tools correctly (see image above), your return would be around 50% for the same period of time. That's an extraordinary difference. And it's clear that with that sort of gain going on we don't mind absorbing a few dings.
I looked at the all critical Big Five for NTRI and was glad to see that things are continuing to progress. I especially like to look at Cash Flow from Operations (OPS) and see if it's moving up.
OPS is a great early warning device that tells us if the business is getting itself into trouble. If OPS is starting to slide, it's likely that earnings will be coming down soon, too. When that happens, the price comes down.
NTRI is looking really strong in cash right up to the last quarter report. Obviously, if you own NTRI, this should be old news to you, Heath. You want to be an owner, not a trader or investor. You're an owner. Think like you own all of NTRI and you will be thinking right. As the owner, you are looking at this stock as the sole reservoir of value for your family. Just like Buffett looks at Berkshire and Gates looks at Microsoft. That's the way to do it so that you pay attention.
Phil Town - Now put a band-aid on the scratch and go play.
