UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: ribofunk Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3880  
Subject: Palomar! Date: 6/14/1997 12:48 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
What a relief to read this chat room! I thought I was the biggest idiot in town.

OK, my dumbest mistake was really listening to a cold-call broker from HJ Meyers who is quite persuasive but usually dead wrong. I still haven't closed this particular account, and once in awhile I still let myself get talked into bad trades.

Specifically, though, I've lost the most money with Palomar (PMTI). I've bought 5 times, 4 of them at a loss.

PMTI seems to be a basically good but (formerly) over-hyped medical laser company who's been trying to become profitable for 2-3 years now. At this broker's recommendation, I bought $850 of Palomar for about $3.00 a share. In 6-9 months, sold at 12. Along with another trade, my $850 was now over $5,000!

Unfortunately, I thought this broker had a touch of gold and gave him $26,000 (which is a fairly good chunk of my savings). About a third of it went to more PMTI at 14 1/2, which was near the peak of about 16 1/2.

The stock market dip last year sent PMTI down to 8-9, and he kept urging me to buy more, because it was sure to shoot back up before too long. After about 10 months of slowly drifting down to the 5-7 range ("now it's REALLY undervalued--buy more"), Palomar shot up to 9 on high volume and trading was briefly suspended. I finally gave in to my broker's urgings and doubled my position. That's just before it sunk to 3 to 3 1/2 on disappointing earnings and patent infringement problems

On the way down, I bought more small amounts at 6 7/8 and 4 1/2, thinking "it CAN"T go any lower than this." I'm holding at 3 3/8, but I think it may take awhile to recover.
By the way, my $26,000 is now worth about $6,900.

PS--I have this nagging suspicion that someone in the brokerage is short-selling while the brokers are recommending "buy." Nothing to go on but a pattern and a bad smell. Does anyone know who to talk to about possible insider trading, or if there's any point without a smoking gun??


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement