Dear Paul, I did post a little on LCAV
>>Why sell at 10 ? You love the IRS ?<< and such.
The LCAV closed Friday at 6 15/32 and I bought it Tuesday for 4-even. Must have sensed the Momentum right. I must admit I had a sell order in at 7 7/8 because my goal was to earn the money in stocks for the “Cabin” I have to build at my Cottage on a Lake in Canada. (Now 3 married kids, 5 grandchildren) I have the money but the cottage itself was bought from stock gains, mostly Nowsco Well Service (Calgary) The sailboat Union Carbide options after Bhopal. So, why not the “Cabin”?
At 7 7/8 I could have paid my US taxes, built the “Cabin” and have some left over with the interest of which to pay for the higher RE taxes and insurance. You see all expenses are planned, budgeted, never in hot water.
But when LCAV hit 7 during Friday I got on the phone to Florida and cancelled the order. Let it ride. It's been a great ride. 10 Grand one night, 14 last night. Mind you, on paper, so far.
Iteresting lesson, though, from this first foray into Momentum: Takes just as much DD, maybe even more. And can I do it on Sun Microsystems ? I am an EE but have no idea who will win the battle of whatever standard. Basically I stay in SUNW because I saw Scott McNealy being questioned once as to how good he is in Strategy. His answer: You just wait and see. He was extremely confident, convincingly to me and I have terrific BS detectors.
So, in this instance, it boils down to a gut feeling. Which have their place. I once had lunch with an officer of Magna Intl, an Austrian Toolmaker (like Stronach, the founder) and he told me TESMA (a sub of Magna with public stock) is good, it can grow better than Magna, still being small compared to Magna.
Well, I was going to look at the financials and dig out what I could. The stock was at 12. MY first father in law, then 92, went and bought it. Three days later, in the paper: Stronach got 300 000 options of TESMA. Too late. Went to 18.
Ha ! My father-in-law had bought it, saying “If this friend tells you it is good, he is doing you a favor” Just on the gut feeling, rode 12 to 18.
Going back to bed, just wanted to check how LCAV closed the day. Will consider VISX options on a pull back. Haven't done Options in Years. Anybody knowledgeable on Value Board ? This almost feels more like Art of Investing, but it's pretty dead there
Walter in HK |
