Today was an all systems go day. Probably one of my top two or three days so far. I was up almost exactly 2%. So I ended the month of April down about 1.7% (entirely attributable to LMNS), but I am now up for the year by 6.7%.
With my multiplier, I had 7 stocks today make me more than $1,000 (about $44,000 in total).
GTAT was up 5.4% (17,000)
KLIC was up 7.9% (11,600)
GNW was up 2.6% (5,800)
TPVG was up 2.1% (1,600)
GSOL was up 11% (3,200)
ATVI was up 1.6% (1,300)
HIG-WT was up 2.7% (1,200) and
SYNA was up 3.1% (1,100)
I guess that is actually eight stocks.
I did execute a few sales today. I sold my GSOL for a 3% overall gain in a month at 8.85. They announced the $10 tender offer and I decided to take the cash in the fist.
I sold my KLAC that I had bought on a speculative basis. That lost about 4%. Then I sold my CYOU from my May 6th 2014 tranche a week early. Recall the rules of MFI are to sell losers before the year is complete to harvest a short term Capital Loss. It ended up losing 4.2%.
Stocks To Consider
Looking at my "loser" list, RDA stands out as the odd one, down 3.4% (-1,200) to 16.87. For those of you interested in arbitrage, I would recommend looking into RDA. My understanding is that they
will be bought out at 18.50 a share. That is almost a 10% gain from today's close. Of course, check that nothing has changed. Volume was 6x normal.
Another stock I recommend a look see is TGONF. It is very ill liquid, so be careful. But it remains an absolute bargain. They just published their NAV (Press Releases 2014 - Tetragon) as of end of first quarter and it was $16.83. Yet the stock sells at $10.05. They also had a tender offer and buy buying back their own stock at a huge discount to book value resulted in an increase of 28 cents to their NAV. Lather, rinse, repeat. They can just keep doing that until I own all the shares. At some point, to be a catalyst to unlock value, they may just wind things down. FUR did that earlier this week and the stock jumped from $11.51 to $13.90. It takes courage, but sometimes a stock is worth more if you simply liquidate.
Very Angry, Very Angry Indeed
In the "That Makes Me So Mad" Category, See where Exelon is buying Pepco. CNBC said "something smells bad" regarding this deal (Exelon-Pepco deal 'smells bad': Trader). They average selling 100 call options a day (POM). On Monday (before the deal was announced) they sold 4,000 call options. Wth the announced buyout, the value of those options went from $2 to $7. I think each call option is 100 shares. So that is 100 x 4,000 x ($7 - $2) = a cool $2 million. Doesn't take a rocket scientist to ascertain someone was trading on insider knowledge. And the losers are the people tempted by a moderate spike in call premiums to sell the options. I have started (once) to sell options, and this is exactly what makes me queasy about it. Not everyone is playing with the same deck of cards.
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