Alpha and WTC

On a good day on the stock market, anyone can make a good recommendation.  However, it is always ALPHA that I want.

Currently, the spice is Australian software stocks.  But the flavour may fade in days.  Oracle and another big software company have each spent over AUD$1 billion acquiring Aussie software.

As Warren Buffett advised, don't buy anything you don't understand.  Well, I can never follow his principles but my father said to buy anything that makes good reliable profit.  I would add reliable and INCREASING real profit and not incumbent with debt.  I am not totally following my father either because he said the dividend has to be higher than interest earned on deposits in banks.

This morning, I sold QHL a modern technology stock at a loss for WTC.  Of course, I can never get the trough but it did go up from $13.40 (what I paid for) to $13.87...  I have been topping up on WTC so those foreign takeovers came at a good time!  Luckily, most were bought earlier.

Fund managers wanted the founder of WTC to sell some of his shares to improve liquidity.  So after he has completed selling off an extra 2% out of his holdings, the price went up further.