<<Other stocks may have done 20-baggers before, but can anyone recall one doing so in less than ONE YEAR?>>
Try Qualcomm (QCOM).
One scary simularity between QCOM and MRVC is that in December, after a huge run up, and analyst came out and gave QCOM an outrageously high target price. The stock jumped 30% plus over the next few days, but then dropped back to it's previous level. Let us hope that MRVC will not suffer the same movement with this new analyst report.
For those who want to sell at these prices to protect a profit without paying short term capital gains, try options.
You can buy a put that will give you the right, but not the obligation, to sell at a specified time and price. For example, say you bought last year in early March and do not want to sell until 1 year later for tax reasons. Buy a March put to sell at your price. If the stock has a pull back, you exercise your put at the strike price. If it continues to sky rocket, you do not exercise the put, and the only thing you are out is the cost of the put which is likely paid for by the tax savings.
You can also sell a covered call. Right now the April 110 calls are going for over $20. This will give you the obligation to sell at $110 in April, plus you get the $20 premium, for a total price of $130. If the stock drops, the option is not exercised (i.e. you do not sell), but you do get to keep the premium. In my case, the $20 premium will triple the basis of my original shares.
Be careful with options. They can bite you. But I have found them particularly helpful in this type of situation, that is when I want to lock in a current price, but do not want to actually sell for several months for tax reasons.
Congratulations to all,
Steve |
