I was gonna try a strategy but never got around to implenting it. If someone wants to give it a go, here it is.
following SGR, WEL and SKP they historically traded at around the following.
WEL being the base line
SKP about 3 times WEL
SGR being 10 time SKP
If one looked at which ever was on the lowest side at any given time and invested in that one, then when ever they get back to baseline or cross over the other way, cash out of that one and invest in the lowest from the ratio....
So as all 3 stocks go up and down you can always manage to get more shares of either one.
Does this make sense?
so say as baseline(as they ahve been in the past)
WEL = 0.03
SKP = 0.09
SGR = 0.90
say SKP goes down to 0.08 then you buy $1000 for 12 500 shares
if now WEL drops 0.02, you can sell you SKP and buy into WEL...
Or if SKP goes up to 0.11 you can sell it and by into one of the other two.
....
I think in the end you can increase the amount of shares you have even if the share price goes down, and then once share price recoves well you would simply have more shares of any given stock and there fore made more money.
SO currently
WEL 0.13
SKP 0.42 (0.13 *3 = 0.39)
SGR 3.04 (0.39*10 = 3.90)
if anyone was invested in SKP, they should be cashing out and investing in really investing in SGR but WEL wouldnt be to bad either.
Can anyone have look over this and tell me if im going crazy or if this kinda make sense?
I didnt do the math to see if i followed if over 1 year how much it would pay off.
Jeff
