Further to a point i have made before, if there is a great prize on speculative offer, but yet which appears undiscovered, the sun will eventually shine to it.
So try to identify those opportunities early (when the MC is heavily discounted), and understand that in the emotional side of the market, a herd will be drawn to it in discovery if it essentially agrees with the premise of the bet, and they will also wander off in their impatience. Profit takers may create down legs, trends etc. Understand such cycles is just part of the market. You cant pick the high or low. The key is, then to position early as i did, and take a free carry position because of understanding that you will always find an alternative use of that seed capital, and hedges the risk of market volatility.
The best way, that i have found is to look for acquisitions that change the status quo. The stock will have little following, depressed incumbent registry, and an opportunity to take the opposite view of the market in the present. That market next week, month, can be an entirely different beast, as it gets a new wind behind it.
Think about what is the market. ? But over/ under supply of those who want in today, and those who want out. And where does that balance shift. Does it change the ultimate reward ?
Find early, when there are few who are putting their sails in its wind. As long as you identify a good ship with a sturdy deck.
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