This article talks about how a company called OSI Systems is a good choice for people who want to make money by following market trends. It says that understanding and following these trends can help investors be successful in the stock market, but it's not always easy to know which trends will last and make profits. Read from source...
- The author starts by stating the obvious that "the trend is your friend" without providing any evidence or explanation for this claim. This is a common fallacy in investing articles that tries to appeal to authority or popularity rather than logic and reason.
- The author then jumps to OSI Systems as a great choice for trend investors, without giving any background information about the company, its products, services, competitors, market share, etc. This is a sign of lazy research and poor analysis. The reader should not trust the author's opinion without having some basic knowledge of the company and its industry.
- The author does not explain what he means by "trend" or how to identify it. He simply assumes that the reader knows what he is talking about, which is another fallacy of presumption. A trend can be defined as a general direction of a stock's price over a certain period of time, but there are many ways to measure and interpret trends, such as moving averages, relative strength index, bollinger bands, etc. The author should have given some examples or criteria for determining whether OSI Systems has a favorable trend or not.
- The author claims that OSI Systems has been "consistently outperforming the market" without providing any data or sources to support this claim. He also does not specify which market he is comparing it to, such as the S&P 500, the NASDAQ, the industrial sector, etc. This is another example of vague and unsubstantiated assertions that lack credibility and accuracy.
- The author then lists some "reasons" why OSI Systems is a great choice for trend investors, but they are all based on subjective opinions or anecdotal evidence rather than objective facts or statistical analysis. For example, he says that OSI Systems has a "strong balance sheet", but does not explain what that means or how it affects the stock's performance. He also mentions that the company has a "diversified portfolio" of products and services, but does not show how this diversification reduces risk or increases returns. He also cites some positive reviews from customers and analysts, but does not provide any links or references to verify their authenticity or relevance.
- The author concludes by saying that OSI Systems is a "buy" based on his personal judgment and experience, without considering the potential risks, uncertainties, or drawbacks of investing in the stock. He also does not acknowledge any alternative views or perspectives from other experts or investors who might disagree with his opinion. This is a sign of arrogance and confirmation bias, which can lead to poor decision making and suboptimal outcomes.
Overall, this article is not very