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Author: NunoRicardo CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2746  
Subject: Dodging Two Bullets with One Divorce Date: 2/27/2007 10:33 PM
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Divorce as many of you fools know can be a painful emotional experience. But it can occasionally bring a smile to your face after days like today.

Recently separated, I had to liquidate all assets to prepare for a final financial settlement with my soon to be ex-spouse. At the time I was pretty upset because I thought I had some pretty good positions on KO, AAPL, and TRLG. But there's nothing like a huge sell off to brighten the day.

Bullet 1
While KO is still not as cheap as when I owned it ($41.30), the stock is now on sale and I will be buying more very soon as I strongly believe in its long term prospects. I also like its dividend yield at 2.9% (http://finance.yahoo.com/q?s=KO).

I bought AAPL at $85.63 and sold at $90.23 for a small profit. The stock will probably go lower than today's $83.93 since I don't think this sell off is done yet. So I'll wait a few more weeks and I will be getting back in. The Iphone looks like it will once again propel Apple to a market leader position in yet another industry segment.

TRLG is expanding quickly and opening its own stores. It has a low PEG ratio of .69 (http://finance.yahoo.com/q/ks?s=TRLG) compared to an industry average of 1.12. I first bought it at $15.55 and sold it at $19.50 for a nice return. It looks good at $16.64 so I will probably buy some tomorrow, wait a few weeks and if it moves lower, I'll buy more and cost average down.

Bullet 2
I just finished selling my house in Baltimore, MD on January 30th. While the final price was lower than the original listing, it could have been worse, much worse. Freddie Mac has tightened its subprime standards which means there will be less money available for mortgages
(http://www.marketwatch.com/news/story/freddie-mac-toughens-subprime-standards/story.aspx?guid=%7B3F839423-9407-4ED0-9351-4999979A647C%7D). This will have a negative effect on housing prices especially in the mid to lower price ranges. The median house price in Baltimore is $269,000 (http://www.housingtracker.net/old_housingtracker/location/Maryland/Baltimore/) down from a high of $290,000 in June 2006. Thus I think prices in Baltimore will continue to drop because of this and other factors including a terrible public school system.

Bullet 3
My 401K plan took a hit. That was the one asset I did not have to liquidate so that bullet found its target, OUCH! Damn Asia Pacific fund!
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