Thursday, February 22, 2007

Seller's Remorse

Usually best in investing not to look in the rear-view mirror too much. But it is entertaining. The stocks I have sold "early" have been
  1. PCU - sold in October at $49 for a 35% gain as I had actually owned it a year (I bought before I knew about MFI). Terrible mistake, it is now at $72 and would have been a double.
  2. PTSC - I sold at 92 cents when I decided it was not a legit MFI stock, also around October. Seemed brilliant when it dropped to 46 cents. Closed today around 76 cents, so I am not feeling so smart.
  3. ELX - sold at start of month at around 17.85. It is now 18.62. I should have waited the full year.
Then the sidecar stocks I sold yesterday would have netted me another $500 clams today. Oh well.

Looks like BLDR had dreary earnings (Builders FirstSource Sees Tough 2007), they are down about 8% AH.

PGI seemed "ok", not much AH action (InPlay: Premiere Glbl Svcs reports Q4 below consensus, ex-items; reaffirms Y07 rev guidance).

The MFI stock to soar was VRGY (Aftermarket Movers: Verigy Jumps), one I had not deemed worthy of consideration (proving once again how little I know). It is up 21% AH!!!

Tomorrow I "sell" HW as I will have held it one day less than a year and it is underwater. I will likely buy it back for a new year though. It is still marginally on some top 100 lists.

Happy Investing! (I did have a decent day, depsite ANF being a bit down)as EGY & FTO did well. Oh, PTEN also had earnings this morning. Pretty much as expected (Patterson-UTI 4Q Profit Up 17 Percent).

4 comments:

Nick said...

I feel your pain. I bought ALDA three times only to sell at the bottom. Live and learn. At least I bought some good companies (WU, IAR, CRYP) with the proceeds from ALDA.

-Nick

Mike said...

What is the rationale behind selling HW if you plan on buying it back right away? Do the tax benefits of showing the loss offset the transaction costs for your situation?

Just wondering, I've been on MFI for 1 year now and am coming up (next week to be precise) on my first round of selling. Trying to decide on EGY. I've held it for a year, it is slightly down now from where I bought but still on MFI top 25. I'm considering just holding it and since I would just be switching to something else on the same list.

Ron said...

Mike:

I also have EGy, which I purchased in early March 2006. At one point, I was considering doubling down on it, but have decided against it.

This is one of the (rare) times when the one year holding period hurt us. I bought last March at 7.00 and it reached 10.40 during the high oil prices of July/August. It is now about even.

I would hold it if it is yours.

justadrone said...

Mike,

I did not "really" sell HW. It is a phony transaction just for MFI scorekeeping. I intend for it to show up as a new stock on Monday. I will "sell" all stocks at one year and then re-enter with a new "purchase" date if I want to hold for another year. That way my exhibits will not show stocks held longer than a year.