Tuesday, March 03, 2015

VEC As In Wreck

VEC isn't actually a wreck. I will let my readers figure out the title derivation. That being said, I looked at VEC off me today. I was stunned to see that on an absolute dollar basis it is #3 all time for me in the profit I have made from the stock. Now before we get all excited, GNW and GTAT at one point were #1 and #2 for me,  so if one still owns the stock, it is possible to give it back.

Part of it is that I did make an outsized bet on VEC on 10/20 when it dropped to $19.71.  I sold those shares a month later for a very quick and very sizable 30% profit. I guess I didn't really notice it as everything else was crashing and burning around me in the fourth quarter (shudder).

Then I rebought it at the start of the year at $25 and moved into my MFI portfolio 2/1.  So it is up another 35% for me.  VEC is an interesting stock that made both Greenblatt lists, spinoff and MFI.

I am sitting on the most cash (in absolute terms) in my investing "career". A bunch of it is earmarked for my next two MFI Formula tranches. The rest will be used to either


  1. Pay down mortgage
  2. Stay in cash
  3. Bonds/income stocks as I try my retirement glide or
  4. Something altogether new (perhaps a big cap MFI tranche). 
Exciting times indeed. 

7 comments:

John Carney said...

Marsh,

You have the numbers to support #4. From what I think I know I would do big caps of 1 billion + 1.8% dividend. This dividend is about equal to to the S&P 500. Then a random sort.

At least I hope you do it on paper!

Paul T said...

I also bought VEC, but as a spinoff stock, not MFI. Now for the latest list, I see it makes the MFI +150M cut. Very Interesting. Do I take my 60% gain and run, or double down and make it part of my March MFI Tranche?

Lian Bao said...

Hello Marshall, you are on a roll lately. Your stocks are having good earnings. eg, NHTC. They released earning this afternoon and they look pretty good, ah is up 8%.

Marsh_Gerda said...

Paul - not sure what to tell you about VEC. I did the same thing and rolled into my MFI Feb tranche (rounding out the shares) as opposed to doubling down.

Lynn - since February everything does seem to be clicking. But I know (from last September- December) that it can turn in a hurry.

Paul T said...

Marsh: I'll probably do the same. Nice problem to have :)

Wish all my stock buys turned out so well.

John Carney said...

Marsh,

A nice thing to put into simple formula is to take the list that may be on the list in March 31 and look at dividends dates.

For example CSCO you will miss the dividend if you buy on March 31st. You may want to run MR random on March 1st and maybe select CSCO and buy three days before the record date.

If applied over a year you get extra juice.

Also writing puts out one month provide extra juice.

Marsh_Gerda said...

John,

I hold stocks for a year, so I always should get four dividends irregardless of timing.