I like to keep tabs on the big movers in the markets, especially the big downward moves. Sometimes those big moves are a market over-reaction to some less-than-positive news. If the stock is healthy - if the price-dive really was an over-reaction and not a sudden correction - then the market usually corrects itself pretty quickly, sending the price back up. A situation like this - when the madness of crowds is driving a price down instead of up - is a window of opportunity to make some money by buying the stock at the bottom of the dive and selling when it recovers.
I'll illustrate with one that I missed: OSI Systems, Inc. (NASDAQ:OSIS). On Monday December 9th this stock did a LOT of intra-day movement. It went from over $65 a share at 10AM Eastern to $40.50 before noon. The cause of the movement was a number of news stories concerning the Transportation Safety Administration having cancelled an order for OSIS baggage scanners.
I was unfamiliar with this technology stock, but my research indicated that it was fundamentally sound, and that it would recover. I guessed it would come back to $50 a share, at least. This meant I could buy some shares at OSIS's noon-ish price of $40.50 and sell at over $50 in the near future, netting myself roughly a 25% profit.
The time it took to research, though, was too long. It was back up to nearly $50 a share by around 2PM that same day. This was a job for a day trader, which I am not.
It's possible that if trading stocks was what I did for a living then I could have devoted myself to this opportunity and made something of it. Mostly I found myself in a position to watch this opportunity go by, fast
However, another opportunity provided itself yesterday: Jabil Circuit, Inc. (NYSE:JBL).
JBL reported quarterly earnings yesterday, and this quarter - while profitable - wasn't up to par with analyst expectations. Guidance for the coming year was also adjusted downward.
In reaction, the stock fell over 20%, from $19.72 to $15.50 or so. This struck me as extreme for a stock that, just this summer, was flirting with $24 a share.
One of the many things that JBL does is make plastic casings for the iPhone 5c. It also makes parts for HP, and has been making parts for Blackberry. An issue affecting the immediate future of JBL is the winding-down of the relationship with Blackberry.
The stats aren't bad. It appears that JBL has a good cash-to-debt ratio, and that it's actively netting a profit.
I decided to buy.
I had to sell another equity before I could buy, though. I seldom have money in my investment accounts that's not already at work.
I sold Riverbed Technology, Inc. (NASDAQ:RVBD). It's an American networking equipment manufacturer, and it looked good when I bought it on 31 October 2012. I bought 100 shares at $18.36 each for a net cost, including fees, of $1,845.99. It went up shortly after I bought it, to a 52-week high of $21.39, and in retrospect I should have sold at that time. After that it dove again to a 52-week low of $13.77. In the past months it's been working its way up again, but I think American networking equipment manufacturers have become suspect as a result of ongoing NSA revelations. RVBD shareprice has slowly been approaching the price at which I originally purchased, and my plan has recently been simply to sell as soon as I'd covered my fees and would not be taking a loss.
I hate taking a loss. I did the math, though, and the potential upside on JBL was such that it was worth the loss on RVBD.
I sold my 100 shares of RVBD at $17.10 for a net total of $1,699.98. That's a total loss of $146.01.
(I'm not going to try to do the math on the wasted year in which time that money probably lost additional value.)
After selling RVBD yesterday, I purchased 110 shares of JBL at $15.53 a share for a net cost of $1,718.29.
I need JBL to go back up to at least $17.04 in order to break even and make up for the loss on RVBD. I think, though, that JBL will go a bit higher than that within the next year. In a perfect world it will go back up to $24 a share, but we'll see.
JBL's high today was $16.58, so I'm confident I'll break even, at least.
19 December 2013
14 November 2013
Updates November 2013
I've done some buying and selling since my last post. In fact, I feel some duty to keep my hypothetical readers informed of some of the most recent changes.
I wanted to buy MIND C.T.I. Ltd. (NASDAQ:MNDO) when it went down to $1.67 a share. This is a stock I buy occasionally in the Fall and sell in the Spring if all goes well. It's a nearly yearly trade. In fact, if there's any one stock that justifies the title of this blog then it's MNDO.
Here's my first post about it in March of 2012.
Here's another one from a few days later.
Here's yet another from April 2012.
My last round of buying and selling MNDO was resolved in March 2013, but I failed to write about it until a more general update post in September.
Anyway, when I saw MNDO was down to $1.67 then I just had to buy it, but I had no liquid cash. And there was nothing I was burning to sell in order to finance the buy. Upon reflection, though I decided I could part with TICC Capital Corp. (NASDAQ:TICC). TICC has been good to me, but I'm not sure I trust its balance sheet in the long term. The dividends it pays - while awesome - could perhaps be better spent making its balance sheet more balanced.
Here's my first post about it in March of 2012.
Here's another one from a few days later.
Here's yet another from April 2012.
My last round of buying and selling MNDO was resolved in March 2013, but I failed to write about it until a more general update post in September.
Anyway, when I saw MNDO was down to $1.67 then I just had to buy it, but I had no liquid cash. And there was nothing I was burning to sell in order to finance the buy. Upon reflection, though I decided I could part with TICC Capital Corp. (NASDAQ:TICC). TICC has been good to me, but I'm not sure I trust its balance sheet in the long term. The dividends it pays - while awesome - could perhaps be better spent making its balance sheet more balanced.
I had previously purchased a total of 320 shares of TICC for a total of $2,807.98, including fees. On 7 October I sold 388.03 shares of TICC (thanks to dividend reinvestment) for a total of $3,726.67 after fees.
I bought 2225 shares in MNDO at $1.67 a share. I plan to sell them early next year. I hope to make at least a 33% profit from the transactions.
More recently I discovered that a stock of which I'd been very proud - Cirrus Logic, Inc. (NASDAQ:CRUS) - needed to leave my portfolio. I sold on the 13th of November.
I'd bought CRUS when it was at a recent low of $17.66 per share. Since then it had shot up over $25 a share, and I considered selling it. I decided, however, that I expected it to go still higher in the long term. CRUS makes components that have been used in various Apple products, and I expect Apple to remain a strong brand. In fact, it was the success of the iPhone 5S that caused the price to jump over $25, I think.
News has surfaced that the new iPad Air does not contain one of the CRUS components that Apple offerings typically do. As a direct result of this news the price of CRUS fell below $20, which sucks, but I was able to sell at $19.58 and walk away with a net profit of 10%. I'm calling it a win.
CRUS does still contribute to Apple's success. I understand the iPad Air still uses a CRUS codec, for instance, so it could be the stock is still a winner. My instinct, though, is to sell. Depending on how the relationship with Apple evolves I may wish I'd held on to it.
CRUS does still contribute to Apple's success. I understand the iPad Air still uses a CRUS codec, for instance, so it could be the stock is still a winner. My instinct, though, is to sell. Depending on how the relationship with Apple evolves I may wish I'd held on to it.
For now I have invested in Collectors Universe, Inc.(NASDAQ:CLCT). I purchased 230 shares at $15.921 each, for a total of $3,671.82 including fees.
When priced below $16.25 a share the dividend yield on CLCT is over 8%, and unlike TICC the balance sheet is beautiful. CLCT can definitely afford to pay its dividends. I plan to hold on to it for a while, but it may end up simply being a place to store value while I wait for another investment opportunity to make itself known.
When priced below $16.25 a share the dividend yield on CLCT is over 8%, and unlike TICC the balance sheet is beautiful. CLCT can definitely afford to pay its dividends. I plan to hold on to it for a while, but it may end up simply being a place to store value while I wait for another investment opportunity to make itself known.
17 September 2013
Catching Up September 2013
I've had an active trading history for the past year or so, and I've utterly failed to keep my loyal readership - assuming I have a loyal readership - informed. Here's a quick and dirty summary of my trading activity since my last updates in October and November of 2012.
5 November 2012: Sold 200 shares of Sigma Designs (SIGM) at 5.96 each. This was a loss. I had purchased them at $8 each. Over the past year the decision to take a 25%+ loss in order to avoid a larger loss has been justified, until recently. At the beginning of September 2013 the stock was trading below $5 a share. It's been an active couple weeks, though, and the stock has recently topped $6.50 in intraday trading. No regrets, though. Moving on.
7 November 2012: Purchased 120 additional shares of TICC Capital Corp. (TICC) at $9.90 each. I have a good history with this stock. It pays amazing dividends. Dividend reinvestment buys me more shares each quarter than the quarter before. As of this writing I own 376.239 shares.
13 February 2013: Sold 188.553 shares of ABB Ltd (ABB) at $21.55 each. I'd purchased the shares in question at an average of roughly $16.75 each. They've gone up above $23 in the time since I've sold. This doesn't surprise me. The stock pays a decent dividend. That said, the dividend is annual, and usually paid in April. I expected the stock to decline in value after the dividend was paid, but so far this year it has remained high. It's tenacity at the $23 level has surprised me.
21 February 2013: Purchased 140 additional shares of Corning Incorporated (GLW) at $12.50 each. This was me doubling down. I purchased 140 shares in July of 2012 for $12.24 each. With dividend reinvestment I now own 285.662 shares.
21 February 2013 again: Purchased 190 shares of Logitech International (LOGI) at $6.79 each. Logitech makes computer accessories. They've been hard-hit by the fact that people have basically stopped buying PC's. That said, Logitech also makes accessories for smartphones, tablets, etc. It has had a couple of bad quarters, but I think it's on the way up again.
15 March 2013: Sold 1,749.486 shares of MIND CTI Ltd (MNDO) at $2.15 each. I had hoped to sell for more. I've written many, many posts about my "cunning plan" for this stock. Go back and find them if you're interested in how it was all supposed to work. At the end of the day it worked well enough. I paid an average of roughly $1.70 per share. I sold for $2.15, so that's a 26% profit. I'm calling it a win.
15 March 2013 again: Purchased 280 more shares of Logitech International (LOGI) at $6.81 each.
15 March 2013 yet again: Purchased 100 shares of 3D Systems Corporation (DDD) at $29.93 each. This is the third time in two years that I've purchased shares of this stock.
26 April 2013: Sold 3,000 shares of BAB, Inc (BABB) at $0.66 each. This one I regret a bit. I purchased my shares over a year ago at $0.50 each. It pays a dividend of at least $0.04 per share each year. Last year it paid $0.08 per share, actually. At my original purchase price of $0.50 then that's a 16% dividend for that year alone. At $0.66 I sold for a 32% profit, which is nice. That said, the stock went to $0.95 recently, so I find I'm questioning my decision. Here's my concern, though: The great dividend last year was because of changes to the tax code. I suspect this year's dividend will not be as good, but I won't know until December of 2013. I decided to sell in April to avoid a downturn that, so far, has failed to materialize.
26 April 2013 again: Purchased 985 shares of USA Technologies (USAT) at $2.02 each. I'm long on this stock. Lately it's been below my purchase price, though.
13 May 2013: Sold 100 shares of 3D Systems Corporation (DDD) at $46 each. I had just purchased them in March (see above). That's a 50+% profit for a 2-month investment. Not bad. This is the third time in two years that I've sold this stock at a profit.
14 May 2013: Purchased 1,015 additional shares of USA Technologies (USAT) at $2.02 each. I now own 2,000 shares.
24 May 2013: Purchased 100 shares of Facebook (FB) at $24.85 each. I had decided that Facebook was about to break out, finally.
25 July 2013: Sold 100 shares of Facebook (FB) at $33.40 each. Evidently I could have held out for $45 per share, but I did not know that at the time. I'm not unhappy, though.
26 July 2013: Purchased 190 shares of Cirrus Logic (CRUS) at $17.66 each. This stock had just taken a dive that appeared to me to be a bit of an over-correction. Thus far I've been vindicated. It seems to be staying above $22 for now.
That's all for now. I'll do another annual update in September of 2014. I may or not update this blog again in the intervening year.
5 November 2012: Sold 200 shares of Sigma Designs (SIGM) at 5.96 each. This was a loss. I had purchased them at $8 each. Over the past year the decision to take a 25%+ loss in order to avoid a larger loss has been justified, until recently. At the beginning of September 2013 the stock was trading below $5 a share. It's been an active couple weeks, though, and the stock has recently topped $6.50 in intraday trading. No regrets, though. Moving on.
7 November 2012: Purchased 120 additional shares of TICC Capital Corp. (TICC) at $9.90 each. I have a good history with this stock. It pays amazing dividends. Dividend reinvestment buys me more shares each quarter than the quarter before. As of this writing I own 376.239 shares.
13 February 2013: Sold 188.553 shares of ABB Ltd (ABB) at $21.55 each. I'd purchased the shares in question at an average of roughly $16.75 each. They've gone up above $23 in the time since I've sold. This doesn't surprise me. The stock pays a decent dividend. That said, the dividend is annual, and usually paid in April. I expected the stock to decline in value after the dividend was paid, but so far this year it has remained high. It's tenacity at the $23 level has surprised me.
21 February 2013: Purchased 140 additional shares of Corning Incorporated (GLW) at $12.50 each. This was me doubling down. I purchased 140 shares in July of 2012 for $12.24 each. With dividend reinvestment I now own 285.662 shares.
21 February 2013 again: Purchased 190 shares of Logitech International (LOGI) at $6.79 each. Logitech makes computer accessories. They've been hard-hit by the fact that people have basically stopped buying PC's. That said, Logitech also makes accessories for smartphones, tablets, etc. It has had a couple of bad quarters, but I think it's on the way up again.
15 March 2013: Sold 1,749.486 shares of MIND CTI Ltd (MNDO) at $2.15 each. I had hoped to sell for more. I've written many, many posts about my "cunning plan" for this stock. Go back and find them if you're interested in how it was all supposed to work. At the end of the day it worked well enough. I paid an average of roughly $1.70 per share. I sold for $2.15, so that's a 26% profit. I'm calling it a win.
15 March 2013 again: Purchased 280 more shares of Logitech International (LOGI) at $6.81 each.
15 March 2013 yet again: Purchased 100 shares of 3D Systems Corporation (DDD) at $29.93 each. This is the third time in two years that I've purchased shares of this stock.
26 April 2013: Sold 3,000 shares of BAB, Inc (BABB) at $0.66 each. This one I regret a bit. I purchased my shares over a year ago at $0.50 each. It pays a dividend of at least $0.04 per share each year. Last year it paid $0.08 per share, actually. At my original purchase price of $0.50 then that's a 16% dividend for that year alone. At $0.66 I sold for a 32% profit, which is nice. That said, the stock went to $0.95 recently, so I find I'm questioning my decision. Here's my concern, though: The great dividend last year was because of changes to the tax code. I suspect this year's dividend will not be as good, but I won't know until December of 2013. I decided to sell in April to avoid a downturn that, so far, has failed to materialize.
26 April 2013 again: Purchased 985 shares of USA Technologies (USAT) at $2.02 each. I'm long on this stock. Lately it's been below my purchase price, though.
13 May 2013: Sold 100 shares of 3D Systems Corporation (DDD) at $46 each. I had just purchased them in March (see above). That's a 50+% profit for a 2-month investment. Not bad. This is the third time in two years that I've sold this stock at a profit.
14 May 2013: Purchased 1,015 additional shares of USA Technologies (USAT) at $2.02 each. I now own 2,000 shares.
24 May 2013: Purchased 100 shares of Facebook (FB) at $24.85 each. I had decided that Facebook was about to break out, finally.
25 July 2013: Sold 100 shares of Facebook (FB) at $33.40 each. Evidently I could have held out for $45 per share, but I did not know that at the time. I'm not unhappy, though.
26 July 2013: Purchased 190 shares of Cirrus Logic (CRUS) at $17.66 each. This stock had just taken a dive that appeared to me to be a bit of an over-correction. Thus far I've been vindicated. It seems to be staying above $22 for now.
That's all for now. I'll do another annual update in September of 2014. I may or not update this blog again in the intervening year.
16 September 2013
Annual Report September 2013
I first opened the investment IRA account about which I've been blogging
on September 16th, 2011.
As of September 16th, 2012, my investment was worth $17,877. That was based on the closing prices on Friday the 14th of September, actually.
This year the IRA in question is worth $21,984 as of closing on 16 September 2013. That's nearly a 23% profit for the year, which is acceptable, but not as exciting as last year's 43% profit.
A number of trades have transpired since my last update to this blog. On the desktop version of the blog I have links to the Google Finance pages of the stocks I currently own. This has been updated to reflect my current holdings.
For that matter, I have added a list of links to the Google Finance pages of the stocks that I have owned at some point since the inception of this blog. These are stocks that I have owned as part of this portfolio, but that are not currently among my holding.
I will attempt to post a list of the trades that have transpired over the course of the past year or so. I make no guarantees that I will do so in a timely manner. Or at all.
As of September 16th, 2012, my investment was worth $17,877. That was based on the closing prices on Friday the 14th of September, actually.
This year the IRA in question is worth $21,984 as of closing on 16 September 2013. That's nearly a 23% profit for the year, which is acceptable, but not as exciting as last year's 43% profit.
A number of trades have transpired since my last update to this blog. On the desktop version of the blog I have links to the Google Finance pages of the stocks I currently own. This has been updated to reflect my current holdings.
For that matter, I have added a list of links to the Google Finance pages of the stocks that I have owned at some point since the inception of this blog. These are stocks that I have owned as part of this portfolio, but that are not currently among my holding.
I will attempt to post a list of the trades that have transpired over the course of the past year or so. I make no guarantees that I will do so in a timely manner. Or at all.
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