I Choo-Choo Choose You

It's buy time again. 

One of our members recently had some contract work done on his house, and he found that it was interesting how many levels of people were doing the work. His contractor essential subcontracted to a subcontractor to have something done. There were some communication breakdowns, even if everything eventually got sorted. So watch out when you have work done, and don't be afraid to ask questions about who exactly is doing the work on your house.

But onto our task at hand. It's buy time, and we've been toying around with a biggest loser strategy. 

Last time we picked the most recent day the market was open and looked at the biggest losers. Here's the list from Google Finance: 

The idea behind this strategy is to try and catch stocks that suffered a large hit yesterday, without any long term drop before. The thinking is that maybe the loss is the result of some panic or short-term incident. We are thinking we could catch it before it bounces back. 

Discovery is out because there seems to be a lot of different places that have good reasons to downgrade the stock. 

GameStop gives us pause, because they have been in a decline for some time. Apparently the drop might be linked to poor holiday sales reports, which dropped Friday. It appears that more people are purchasing games online. This doesn't bode well for GameStop bouncing back. It looks like this is a combination of people freaking out and also the company declining. That said, they will be selling a new console in the next few months, which should cause a slight bump. We would have to watch it especially closely to get out before the bump busts. 

Wins has seen such explosive growth recently that it doesn't fit our strategy because we're assuming it is done or close to done growing. 

The problem with Generac is that the basic headlines surrounding it caused us more confusion, and we got scared off. It seemed like a whole thing trying to sort out. 

Infosys is the largest in the group, and the earnings per share slightly more than analysts projected, but the revenue was lower than expected. For some reason this caused the stock to drop. 

Based on the stocks we looked at, Infosys and Gamestop are the most interesting. While GameStop took the bigger drop, Infosys is the larger company. In theory this makes Infosys more stable, and maybe explains the smaller drop. Also, GameStop doesn't look good long term. So considering our risk-averse and slightly lazy approach, Infosys makes the most sense. We could probably make a little more with GameStop, but the chances of us sleeping on something and screwing up are high. 

Given the likely volatility of the Trump Presidency, we could hold off until next Friday. However, by this logic we could hold off indefinitely. Basically, we need to make a decision, so we choo-choo-choose you Infosys!

Profit