Dip buying again

Great fundamental progress - I'm trading against the "earnings miss" panic

One of Mr. Market’s crazy tendencies is what I call, “the earnings beats and misses con”.

While earnings are key, the fixation on quarter-to-quarter earnings can create an enormous amount of excess volatility.

This is particularly true in micro and small cap stocks. The reality is that it is next-to-impossible to grow a business while engineering the perfect upward sloping EPS line that quant/momentum investors want to see.

There are real costs (and not all of them expected) with building a larger, more valuable company - things like tripling manufacturing capacity and investing in what is required to become as a tier-one supplier for the department of defense.

This disconnect sets up one of my favorite “buy the dip” opportunities - trading with my long-term view of a business and against Mr. Market’s short-term volatility.

I think this is just such a situation.