Dykstra: The Mentality of the Closer

Affiliated Computer Services raised its fiscal 2006 guidance to revenue growth of 25% from 20% because of the Ascom and LiveBridge acquisitions. I expect fiscal 2006 revenue growth to reach 30%, supported by fiscal 2005's strong bookings.

On the bench: I planned on recommending GFI Group (GFIG) when I wrote this piece over the weekend. But the stock, which has been public for about eight months, had a huge move on Monday -- up 11% on nearly six times its average daily volume.

I don't buy breakouts; it's just not my style, preferring to buy on weakness instead. I plan to buy this stock on a pullback, as GFI's business -- it specializes in interdealer brokerage services for over-the-counter derivatives products and related securities -- has terrific growth prospects.

The Game of Life

As the green of summer transforms into the magnificent colors of fall, the excitement and uncertainty of the baseball pennant race reaches a crescendo. A multitude of factors including schedules, injuries and the contributions of September call-ups and role players, will have a significant impact on who survives to play in the postseason. Invariably, situations arise and events transpire during the stretch drive that are unpredictable.

Despite the overall uncertainty, there are a few constants. Games with playoff implications have a tendency to be close, magnifying the importance of each run. Therefore, the men entrusted to preserve the lead and "seal the deal" become paramount. Barring rain-shortened games or extra innings, 27 outs must be registered before a "W" can be recorded.

The guys who are responsible for getting those last three precious outs are the aptly named "closers." They are constantly seeking that all-important competitive edge by employing various tactics to intimidate the hitters. Seemingly, every closer has his particular theme music that accompanies his arrival from the bullpen (think Charlie Sheen's "Wild Thing" character in the movie Major League). The menacing look of the closer is usually augmented by an interesting pattern of facial hair (think "the Mad Hungarian" Al Hrabosky) and/or a bill cap that obscures the eyebrows (Rich "Goose" Gossage).

By necessity, closers are fearless and supremely confident. They specialize in one or, at most, two pitches, which they continually throw, daring the hitter to get the better of them. Should they fail, they return the next day, expecting the ball in the ninth inning as though nothing happened the previous day. This ability to be impervious to the previous day's results allows closers to flourish in their roles.

Successful traders would do well to adopt the mentality of the closer. Be fearless and don't be afraid to continually throw your best pitch. Pull the trigger when it's time to sell. If the market hits your best pitch, come back tomorrow and throw it again, as though nothing happened the previous day.

Remember: Life is a journey, enjoy the ride!

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