Recent: Sold ATVI, Bought POT

Hello! It is another rare occasion where I have a buy and sell in the same post. Here is the data:

  • Sold all 70 shares of Activision (ATVI) @ $39.00. 41.8% gain!
  • Bought 200 shares of Potash Corporation (POT) @ $16.50.

I finally dismounted my fast pony (ATVI) and put her down. She had a good run. I had an older post about how I missed the original run of ATVI from low 20s to low 30s. It had a nice retrace where I got in at $27.50. I still believe in the company but will standby for another large pull back. I am trying to become better at loving companies but not the stocks! Stocks are a tool to grow wealth. I made a mistake where I took my profits from Walmart and paid too much for Starbucks stocks in the low 60s. I do plan on holding on to those for a while (forever?), but a mistake is a mistake. I invested on the assumption my previous success with the stock of SBUX would continue. Lesson (hopefully) learned!

I think I’ve gotten better at cutting losses too. After my 30+% loss with KMI and the 75% divi cut, I kind of got the idea. Then I tried to play the earnings report game with Buffalo Wild Wings (BWLD). It didn’t go as planned, but I quickly accepted my loss. This leads me to POT…

Potash Corporation is currently paying out $1.00 annually (yield 5.91%). It actually has an ex-div date of 7/8 coming up. However, this is not a long term hold for me. I am out if it goes lower than $15.50. The only way I hold below that is if everything tumbles. If that happens, I will just hibernate and you will not be hearing from me! I would like $19s out of this but will settle for $18s. I have only decided when to tap out, not when to take profits.

Selling ATVI and buying POT has brought me to a forward annual divi total of $2,525.65. I am still $474.35 off of my goal of $3k.

I have been spending too much time reading and not enough writing! I just finished The Complete Turtle Trader by Michael Covel this past weekend. I could not put it down! It is about the legendary trader Richard Dennis teaching people how to trade from an ad for two weeks. At least one of the ‘turtles’ is still going and is VERY successful. However, my favorite part of the book is in the back. A ‘second generation turtle’ is getting into trading. Salem Abraham had just graduated from Notre Dame and was thinking of getting into trading after attending a seminar in school. His seasoned grandpa had these thoughts on trading:

What are we going to do? I guess we just package this up and send it to Chicago. They cut us some check, right, dumb-ass? You may think you’re a smart kid coming out of Notre Dame, but these guys in Chicago, they’re going to chew you up and spit you out. Of all the ways to lose money, why in the hell did you have to pick the very fastest way?

I will have to add this to the stack to review. It was one of my favorite reads of the year. I am going to get off now and go see what else has been going on with the market that I missed while at work. Take care!

 

Brexit Smexit,

JT

 

 

Recent Buys: BP & TOT

It’s like Christmas in June! Santa delivered some oil today. I decided to invest in two ‘super major’ oil companies (BP and TOT) today with the decline of oil. On a completely random note, I am always reminded of this cheesy song when I think of oil.

Я люблю нефть – (I love Oil)

The details:

  • 35 shares of BP @ $31.00
  • 35 shares of TOT @ $45.00
  • This brings my future annual divi income up to $2,329.15
  • I am $670.85 short in future annual divi income to reach my goal of $3k.

BP closed at $30.93 and TOT at $45.39.  VLO closed at $50.79. Is it bad if I am almost as excited about this as my other purchases? I almost went with buying more VLO but want to see if it holds around $50. I am still looking to buy more of this refinery down the road. WBK closed at $21.51 and am also still looking to initiate a position in this Australian bank later on. I have only been participating in this market shindig for about two years now but do find that I like it more when my stocks tumble.

It’s fun when they take off too! However, that happiness goes away as I realize that it will cost more to accumulate more of the stocks I want. I am not concerned with price appreciation / depreciation as long as the divi stays relatively intact. I can take a cut just not a massacre! Sorry bulls…I have been doing my bear dance over here! However, if it’s anything like my snow dance, rain dance, or any other dance it will not work. Oh well. It’s worth a shot!

(I’m still working on The Wealthy Barber review.)

 

Take Care,

 

JT