The Publishing - Newspapers sector has literally been on fire as of late. I actually believe that this rather antiquated business model is finally beginning to find new outlets of exposure and new was to generate revenue in the new internet-based world. Gadgets such as Amazon's Kindle and Apple Inc.'s new iPad are breathing new life into this old medium and the nearly unbelievable rallies in the sector's first and second tier stocks prove this. Take a look at WPO, NWS, JRN, MNI and LEE, just to name a few. These symbols show the sudden interest by big monied institutions and it's just the beginning.
The New York Times (NYT) is my pick amongst these for a variety of reasons. The main one stems from the fact that NYT recently broke above key price resistance. Every initial breakout begs the question, "Is it real or just an anomaly, a fluke?" Initial breakouts are proven to be real if they are rather quickly followed by a secondary showing of strength, and that just happened to materialize yesterday. Fifteen-minutes before the close (a period during which most institutions sneak into their positions in an undetected way), The Velez Opportunity Report took an initial position, adding it to its winning portfolio. I'm looking for a rather easy double from current levels over time and will be using pullbacks to add to this position. At the current moment, I'll be operating with no set protective stop, but that is likely to change in the near future, once I see more.
The $64,000 Question
Let us not forget that the $64,000 question on Wall Street is, "When is a pullback an opportunity to add more, and when is it a reason to run for the hills, to get out?" Wealth belongs to anyone who can answer that question correctly with a great degree of regularity. The recent action in NYT tells me that the institutional interest in the stock is so strong that dips will only be viewed by them as chances to gobble up more shares at a more favorable price. Remember, the big boys can't buy all at once. They must ease into their positions over time, and do so artfully enough not to tip their hand too much. My incremental accumulation approach is a throwback from my institutional trading days, and as the many 100% winners in The Velez Opportunity Report show, it works. So, in short, I will be right there, panting, even salivating, at every dip, every pullback, ready to pounce. Stay tuned and get ready for the ride. It's going to be an exciting one.
