...finds an acorn once in a while. I got lucky and bought an additional 800 shares at 15.5 a couple hours before earnings were released. Now the question is, do I sell them before the next "short article."
It depends on whether you believe management or the friendly bear. If you believe management you should hold until the shorts are all squeezed out, if not you shouldn't have bought in the first place.I bought right after the earnings announcement (AH), and also earlier in the day at a higher price. I sold 500 shares at a nice profit and bought them back when the market dropped a bit. I'll sell the 500 again if the price goes up and will hold the other 700 until the friendly bear goes into hibernation. As you can see I'm hedging a bit. It's also significant that the latest FB article didn't move the market. It's also a bit suspicious that right after the strong earnings report, the FB found another alleged legal case involving yet another supposed whistle blower. A bit too fortuitous to be believable.On the whole I tend to be optimistic about BOFI; I expect to see a short squeeze soon, or at least after the next strong earnings report.
The real question is why did you buy this stock?A. Were you investing - wanting to hold this stock for long term?B. Were you trading - trying to time the earnings release to get a favorable result?If your answer is A - then don't sell (duh)If your answer is B - the event you were trading on has happened, it is now time to sell. Since it went up, this was a good trade. Done. The standard wisdom is to not covert investments into trades AND not covert trades into investments. So the answers to A & B determine if you should sell or not.
Part of the reason I did this was to hopefully transfer some of the investment from my after tax investment to my rollover IRA. I decided to sell a covered call on my after tax account. 10 contracts at 10/21 expiration at $20 for 60 cents. So either keep the $600, less commission or effectively sell for $20.60 at 10/21. Either of these works for me.
This is such a peculiar situation that the normal rules don't seem to apply.As I see it, either BOFI is clean and it's a screaming buy, or it's rotten to the core and should be dumped at any price. It's hard to imagine an intermediate situation, perhaps one could guess that some of its operations are a little shady but not illegal, but that seems unlikely.At the moment it's about 4% of my portfolio and has just hit a new high. I wish I could make up my mind, should I sell a bit to reduce my risk, buy a put or sell a call?Any suggestions?I haven't seen any comments by TMF since the recent quarterly report. I think I could use some guidance
I see that TMF has just posted an update on the recent earnings report. The gist of it seems to be that the short attacks are running out of steam. I guess I'll hold on to my long position, and October calls at $20.
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