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.
Yesterday I demonstrated my ability to act in an undisciplined fashion. Today was different. Harris Corporation (HRS) declined sharply and actually closed at $49.82 on the day down $(5.99) or (10.73)% on the day. I do not see any news that would explain the drop in the stock price. I am sure there is something somewhere that somebody will point out but it doesn't really matter to me.
The point is that this stock in which I have previously sold a portion at a 30% appreciation target moved against me into a loss position. These 103 shares that I held in this account were purchased about a year ago on 1/31/07 with a cost basis of $50.05. On 11/7/07 I had sold 17 shares of my 120 share original position at $65.16 which was my 30% appreciation target.
What this means for me is that if I own a position in which I have sold once at a 30% gain, my next sale on the downside is at break-even. With Harris trading just under break-even, I sold my 103 shares today at $49.67, just under my cost. I didn't hesitate, second-guess, or buy a load of shares to justify my holding. I just sold the shares.
This didn't give me a 'permission-slip' to do anything but sit on my hands with the proceeds.
With this sale of my own shares, I am reducing my rating on Harris:
HARRIS (HRS) IS RATED A HOLD
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