Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decisions based on information on this website.
A few moments ago I sold 34 shares of my Bolt (BTJ) holding at a price of $33.08. These shares were purchased 1/12/07 at a cost basis of $17.44/share. Thus, I had a gain of $15.64 or 89.7% on this sale. My target was a 90% gain, which at the time I entered the order, Bolt had reached.
This is my third sale of Bolt, having sold 50 shares on 2/23/07 with proceeds of $1,148.01 at a price of $22.96, representing a gain of $5.52 or 31.7% (my targeted 30% appreciation point), a second sale on 3/12/07 of 41 shares with proceeds of $1,165.71 at a price of $28.43, representing a gain of $10.99 or 63% since purchase (my targeted 60% 2nd appreciation point), and today's sale of 34 shares with proceeds of $1,124.70, at a price of $33.08, representing an appreciation of 89.7% (virtually at my 90% 3rd sale point.)
My strategy shall be to sell another 1/6th of remaining shares or 175/6 = 29 shares if the shares should hit my 4th targeted sale point on the upside at a 120% appreciation point. This is calculated by multiplying 2.20 x $17.44 = $38.37.
On the downside, I allow a stock that has been sold more than once to decline to 50% of its highest appreciation sale, or since I have sold at a 90% appreciation point, I would unload ALL remaining shares if Bolt should decline to a 45% appreciation point, which calculated, works out to 1.45 x $17.44 = $25.29. I always also reserve the right to sell all remaining shares on the back of any announced fundamentally bad news.
In terms of portfolio management, since this is a 'good news' sale, which for me is a sale at an appreciation event instead of a 'bad news' sale on a decline or fundamentally bad news announcement, and since I am below my 25 position maximum (currently at 17 positions), I thus have a 'permission slip' to start looking for a new position to add today!
And as I like to always say :), that nickel is burning a hole in my pocket already! Thanks so much for stopping by and visiting! If you have any comments or questions, please feel free to leave them on the blog or email me at bobsadviceforstocks@lycos.com.
Bob