A couple years back I bought some JST for about $14/share. Boy did I pay for that decision, as it hit under $5/share last Friday. Then something happened.

For the third time in the last 12 years I got that feeling that a deal is too good to pass up. The company has a decade of growth followed by a bad year, and it's PE is punished down to 4? 4?  That means even if the company has zero growth, I double my money in 4 years just from earnings...  So on Sunday I decided that I would rather buy this and lose my investment if I'm wrong, than not buy this and miss the tremendous gain if I'm right. I'm willing to sit on the shares for 10 years.

So I got in on Monday morning around $4.95, already kicking myself for being 7.5% into the up bounce.

JST is down over the last year for the following reasons: 1. Earnings contractions following China's slowdown 2. Rumors of phony numbers easy to believe in the China market 3. Small company lacks institutional attention.

JST has major customers with quality control who's presence pretty much elimates #2 in my mind. JST makes electric transformers that China uses, and has had a stellar performance for 10 years straight. I don't care how much the economy slows down, China is going to expand and upgrade their electric grid in the coming decades. So poo-poo to #1. And as for #3... well that's the reason I just got what I think is the kind of deal that makes rare returns.

I'm not looking to convince any of you, I'm just telling the interweb because this only happens once every 3-5 years for me. The last two times they were new investments; this will be the first time ever that I buy stock on a dip that I have already lost money in.

Side note on  buying on dips: I saw so many people lose their nest eggs with dollar cost averaging during the tech bubble burst that I could never seriously consider it a strategy. I still not sure if this counts, because I'm not buying it to save the initial investment, I am buying it on its current merits.