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The market is doing lousy as I write. Dow is down 100+, NASDAQ down 25+. Yet my Kyphon stock (KYPH) hit a sale point on a price rise. In fact, a few moments ago I sold 1/7th of my 125 shares (17 shares) at $56.29/share. This was my third targeted sale, having sold twice before, thus my target was a 90% appreciation level.
These shares were originally purchased 5/29/05 at a cost of $29.21. Thus, I had a realized gain of $27.08 or 92.7% since my purchase. When will I next sell a portion of Kyphon? On the upside, I shall be looking to sell 1/7th of my holding if the stock should appreciate to a 120% appreciation level. This works out to 2.20 x $29.21 = $64.27. On the downside, if the stock should drop to 1/2 of the highest appreciation level, which now works out to 1/2 of 90% or a 45% appreciation level, then I would plan on selling ALL remaining shares. This price level would work out to 1.45 x $29.21 = $42.35.
With only 19 positions (maximum of 20), this sale at a gain gives me a "permission slip" to add a new position. That "nickel" is burning a hole in my pocket already!
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