How the Triple Play Game started.
Back in December 1988, one of my friends came to me with the triple play game concept. He thought we should be able to find high flying stocks because he work in Investor Relations and I work in Performance Management/Benchmarking.
So we decided that each Christmas we would give each other 1 stock pick a piece and we would but in $10k in both stocks (total $40k for the both of us).
Then we stated that if a stock does triple, we would take 1/2 the money off the table. If it quadrupled, we would take 1/2 of the profit between the triple and the quad. We would do the same thing if it went up 5 times. After that, we would just let the rest ride.
If the stock did not triple, we take a minimum of 10k out of the stock the week before Christmas.
If we lost money on the stock, we sold it out right.
At the end of that year's contest, the remaining stock is ours to do as we would like, keep or sell.
Here is an example on the stock I recommended last year:
I recommended USAT.
We purchased it a $12.38 a share (800 shares) in December.
In January it tripled and we sold 400 shares at $37.14 (leaving us with $14856 invested).
A few days later it reach $49.52, so we sold 50 shares ($19,808 - $14856 = $4952/2 = $2476/$49.52 = 50 shares). This left us with 350 shares of stock at a value of $17,332.
A few days later it went up to $61.90. So we sold 35 shares ($21,665 - $17332 = $4333/2 = $2166.50/$61.90 = 35 shares).
We are now holding 315 shares valued at $19,498.50 plus we have $19,498.50 in cash).
From now on we let it ride. But a few days later, the SEC halts the stock. During the halt, USAT announces a 4 for 1 stock split. It is was suppose to trade again in March but ... today it only trades on the Pink Sheets at $.125 per share. Total value - 1260 shares * $.125 = $157.50
****That is why we take profits along the way.****
Hardline |
