Tuesday, March 10, 2009

SOLD 1/2 JWF ON SPIKE/ Buy of 50 NADX at $1.27

I do not know when this picture of me was taken.  I believe it was the 10th grade. I like the hair. I am going back to my senior high school photo as my profile picture since it captures my inner look and I have a lot of hair, two good reasons.  Besides it was just taken a few years ago anyway, well okay more than a couple.  

I decided late today to jettison 50 shares of JWF, which was the first lot bought, at $13.09 after it jumped almost 30%.  These shares were just bought at $10.51 and I will keep the lowest cost basis shares purchased in the low 9 area made shortly after the first purchase. Stocks for the Long Run?/End to Irrational Exuberance for Now/CRAMER & Obama/Buy of 50 JWF in IRA This kind of trading is simply a risk reduction technique that I have been using since the implosion of Lehman Brothers.  The shares were sold in an IRA so there is no tax consequences and my use of FIFO accounting is therefore not an issue. I look at it as reducing my exposure to the remaining shares by around $100 after the round-trip commissions which in effect reduces my cost (not on a tax basis but in my mind's eye in the IRA) to close to $7 per share for the shares that I will keep. Buys of JWF KSA DIS and NYX/SOLD Entire Position in TFI/ Just a Day of Ignoring My Own Rules The ex date is 3/13.      

I added 50 shares of National Dentex (NADX) at $1.27 in an IRA.  I am very critical of the management of this company but it does have some recovery potential if its debt does not cause an implosion.  I put it in a different account from the last purchase which is well under water.
My reasoning for putting it in another account is that it frees me from the burden of FIFO accounting in the event I want to sell at a profit the last shares bought and keep the higher cost first shares bought.  The other shares are in a taxable account. 

I am hoping for a good up day tomorrow on heavy volume.   


  I am not a financial advisor but an individual investor trying to navigate my way through a difficult market. I have never worked for a financial institution and never will.  In these posts, I am acting as an unpaid financial journalist and an occasional political commentator.   I am also aggregating financial news stories that I view as important and providing any reader of these posts, assuming there are more than a couple, with links to those articles, sort of a filtered, somewhat intelligent, free search engine.  Any discussion made by me of particular securities  is not a recommendation to buy or to sell.  Trade at your own risk.  Consult with your financial advisor prior to making any purchase or sale. I will try to identify my sales too but it may take a few minutes after I implement them to create a post explaining my reasons.  The sale may before or after the post.  Before buying or selling any stock, even one recommended by a trusted financial advisor,  please research it and make up your own mind which is what I always try to do.  Research would include reading reports, reviewing financial records, earnings estimates, sec filings and prior earnings releases and news.  In this post, and all others by me, I am merely describing my reasons for purchasing  or selling securities, and the potential pitfalls that I identified prior to purchase or the reasons for a sale.  The securities mentioned in this and all posts written by me may not be suitable for others based on their unique financial position and risk profile.  By way of example, it is unlikely that I will ever need the funds contained in my retirement accounts. Always read the prospectus before buying a Trust Certificate, bond, preferred stock or other bond or bond like investments.  Information contained in my posts has been obtained from sources believed to be reliable but cannot be guaranteed.  These posts by me do not constitute investment advice, nor shall they be construed as a guarantee of future results, or as an offer of any transaction in securities.   All content in these posts is provided for informational and entertainment purposes only, and it is a form of entertainment for me. 

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