Luminex (//www.bestwaytoinvest.com/quote/LMNX">LMNX) has now dropped 50% in a month, and given back the entire move of the past year. Another "round trip". Since there is no systematic approach that works in terms of investing these days, I'm trying new varieties such as "buy a layer of stock every 50% drop". So with Luminex down 50% in 30 days we'll put a layer on here in the $14s. When it gets to $7 we'll buy another layer, than $3.50, than $1.75, and so on and so forth. Somewhere around $0.10 we'll go all in. ;)
As long as there are not product recalls I still think healthcare stocks should be among the best to weather the recession. For example in southeast Michigan there is 1 industry where I see construction cranes - hospitals. Remember our new age US economy - shopping, housebuilding, federal government/defense, and healthcare. At least the latter two seem to have bottomless pockets.
Since we sold a larger healthcare position this morning, and are hovering below 50% long exposure I'm trying to find something to at least keep up the mantra of being a long focused mutual fund (i.e. at least 50.1% invested on the long side) I'm increasing Luminex from a 0.6% stake to 1.9% with purchases in the mid $14s.
This is one of the few companies we own that is not currently profitable, but having profits has not helped any of the other names so I suppose it is a moot point. Earnings (or lack thereof) are Nov 6th.
[Sep 16: Bookkeeping - New Position in Luminex]
Long Luminex in fund; no personal position
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