A Trading Mistake Only a Rookie Should Make...

On the 23rd (last Wednesday), I moved 20% of a Client's Position in a 5.8% Dividend Bond to a stable Stock paying 12%+ ; good deal.  The Client was aware, from my Weeklies sent to her, of the amount to expect this week from divs.  And that she'd be getting the standard amount on the 28th and the new spinoff amount would kick in next Q.  No problem.  Done.  Everyone Happy as yet aonther Douglas45 Strategy was at Play.

CHECK EX-DATES ON ALL STOCK
YOU ARE PLAYING

as I have done every time, except one; can you guess when?

     My client called me to tell me the amount deposited into her checking account seemed a bit light.  I punched up her Ed Jones Account to learn why.  Drumroll, please:  THE EX-DATE WAS TUESDAY 22!  Oh no, don't laugh your ass off yet, it get's better.  Every Sunday E-Mail Alerts come in re: Dividends/Ex-Dates upcoming for the following week on Every Stock I, My Clique and My Clients Own.  After I Read the one which included this stock, I duely moved it in "Saved To File"! 
     Now, you'll find out how I keep my clients happy.  My Stupidity with nothing to do with Market Conditions; I wrote a check.  Oh well, she'll buy dinner, next.  

Relax and Manage...

      In 2010, we've a few good HITS  (TIE, BGP, PIKE, BKCC, TGIC...)  and bad MISSES (XOMA, PDLI).  Our Ratio had never been lower than 8:1. 

      Especially with the Market in Flux (missing 2009, yet?), it's a good time to Actively Manage your Portfolios.  Even our best picks wouldn't be on the HITs List if we'd just bought them and not sold or taken profits at strategic points.  And the stocks on the MISSes List don't bother us too much when considering the Long Position on them. 

     We've taken a bunch of Statics out of Our Ports over the past months, which has enabled us to Grow.  Our Rule is a stock has a 3 Month Period to Perform.  After that, we decide on Dump or Hold.  We breath deeply and Take the Dive on non-performers (PDLI) and move on.
     It's only when your Trading Become Static that you really start losing.

     I never Publish a Strategy until it has done well (working on a couple for the Fall).  As for Picks, I could come up with 20-30 per day; but my Due Diligence on them would be Sorely Lacking on them and This Advisory would become completely irrelevant; won't happen.  My "subscribers" know what I mean...

Now, Relax and Do Your Managing.  To paraphrase a popular soda commercial "Do the DUE" (Diligence) [no, we don't own Pepsico!].     

Today's Strategy...

     Oh Hell...

     Was just a bit too happy about the Monday's Market Upswing.  Didn't take reading much in The Financial Times and Stroking Keyboard to know reading The Journal at 3:15 was not going to be fun.  I should have gone back to bed.  Europe was having a "March 2009  Moment" and it was going to travel Across The Pond.  Pre-market trades were confirming my concern and at Opening Bell I saw Red.
     I'm going out for a lunch with my Partner and NOT discussing The Market or a Buildout Project we have going.  Mexican fare with Patron Margaritas will fit the bill.

Back in Play...

MOT -   Still a player in the Cell Game.  Every Pager I have ever bought was made by Motorola (they have proved nearly indestructible).  Nevermind that motivation, mine's always the same - $$$; I think the stocks due for an upward move.  No Div.

   BP -  Okay kids, this is not going to be an easy road, but I think NOW is the time to "forgive" them.  True, I did post <$43> as a possible IN, but this is going to be the Last Call.  We've Parked Cash in MRO which is coming out and being reinvested in BP (we jumped ship 2 days after disaster).  Oh yeah, the Financial Times has a terrific function for a time-line of the Deepwater Horizon Event [LINK].  A rule of thumb strategy you may follow on this stock would be: Buy the day after leak is plugged.  No Div (just thought I'd remind you).

Tougher to Stay on "Mantra" (?)...

     My Mantra for 2010 is, "Portfolios must be 'cannibalized' for Buys" (have Self-Sustaining Growth). 

     This is a good strategy for Diverified (and Larger) Ports.  The best way to accomplish this is Taking Profits.  In 2010, Our Ports are finding that a hard chore. 

      So let's go to "Plan B", Selling Statics; Stock which is NON-Performing.  Hell, this is (unfortunately) a much easier course in 2010.  That's one reason we're cutting positions.

     

It's a different take on Riding The Range.

Changing Strategy...

     We're making changes in our Group Portfolios this Month.  It's a tough time for me, because I like to Play the Market and the percentages just aren't there in 2010.  Our Buying and Selling Strategies are being revised.  We're just getting spread too thin. 
     Within the next month, we are cutting 62 Group Positions Held down to a manageable 30.  The basis for the selloff will be Performance; an easy task in 2010. 
     We buy Positions (individual stock) in "Blocks" to save on Commissions (primary reason for a clique).  A finite number of Slots in the block are available @, say $1000.  Most of our positions are in Blocks of $5000+.  Our Clique has 6 Members. 

     Our Watchlists always consists of a Core 122 Cos, currently we have 143 cos based on new stocks added.  The List will be cut to a Core of 60 and no more than 10 at a time.  Currently, each Group Member is charged with watching a minimum of 18 Held and Watchlist Stocks EVERY DAY.  I am carrying an unmanageable 48, and as GP have an overview of all 62 Positions Held.  And all this while going to our jobs every day and working other Projects (two of us have family obligations): Think we're missing a few Buy/Sell Opportunities?

     It's going to take a couple Saturday meetings

to Trim The Fat.

Cautionary Tale.  We had considered Cashing Out the Group, altoghether and doing our "own thing".  This was Close, Close, Close to happening.  We started with $100 BuyIns but started putting REAL Money into the Group and have become Arrogant Pigs at the Trough of Successful Trading.  It's far easier to say, "gimme a c-note" than it is to "have a Contract, Vote and fork over a Grand".  Plus, who cares about Accountant or Attorney for a $10,000 Kitty; try to be be nonchalant @ $300K.  It's almost like, "Thank God the Market's Down or we'd be taking 'contracts' out on eachother".    

On the Bright Side; We're Saving on Commissions...

     We've done 5 Trades this month!  Big Woop.. 

That's the Tell for how the Market is doing. 

Spotlight on...

STD - neg.

TIE - pos.

Today...

Made a "Ford Trade"/Reup on WFC (27.44).

We like this stock. 
     One of the first trades The Clique made was with WFC.  And it's a Tall Ship in our Port.
     We first Bought (19.58) and Sold (26.03) on a two week flip.  We've gone Back In, Taken Profit, Reupped and done today's "Ford Trade".  It's so easy to make money with this stock if your Empirical Intuition is Active!!!
     Once it goes back up to the $33 range, it'll get tricky.  Hope not, but I think that's going to be the Prime Resistance Level.
     Now, lite me tell you why I think, @ $27+change, we're "picink it up off the floor".  The Spook of Congesses Financial Reform is over.

We are, after all; Cowboy Traders at Heart...

Add to Watchlist...

Just got a tip on FTR re: deal with VZ.

If You Are IN Petrol, Read...

CLICK Pic to Enlarge.

As you can see, other companies besides BP are going to be effected by the Moritorum on Off-Shore Drilling...

NOW!...

Throw some Spare Change into TGIC...

Currently Held...

After my tirade over the week-end, I'm going to give you some Positions Currently Held by us.  As of 9:30A today, we hold 68, this will get you started:

AEZS  BKCC  BPOP  CIIC  CLWR 

DF  DUK  F  FDX  JASO  LTHU.PK 

MELA  MRO  MSY  OZM  PG  RDS.A 

SIRI  STD  T  TGIC.OB  THRX 

TIE  TOO  XOMA

I Forgot What My Subscription Rate Is For This Blog Are. Would someone remind me?...

     I've fielded Comments, lately, asking me for specific and more timely information about what The Clique is up to.  Wanting Dailies on activity!!?    

     The Clique is no longer a Rookie Project and Our Trading is far more Strategic in the Currents Market Conditions.  Over half our Trading is done with keen management of Ports initiallized in 2009, making some of Our Strats of dubious Public use.  Plus, my time is spent on Ongoing Projects which aren't Market related and Our Own Port Management concerns rather than on Blogging.    
     That's why I've had to make this Blog more casual in 2010.  The advice you'll get will be for Stock Leads and some Strategy.  It's certainly never been a consideration to Post Every Move WE Make. 

     I appreciate those who enjoy my Posts as part of their investment activity; your inquiry Comments keep me on the ball.  Thanks.

But Read the Following:

     How happy are my readers who take some Leads for their Watchists and "Get" the Strategies?---Very.
(as happy as anyone can be in The Current Market)

     How happy are the more Dull and Stupid who expects me to hold their hand?---not so much...   




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Today...

Back IN WFC from Parked Cash from Sell of Position @ 31.33.
Took Prof on DUSA from Jan 14th Contract, Parked.

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What we’re INto, Lately…

Today’s Buys were Blocks of JetBlue (JBLU) @ 6.43 and Las Vegas Sands (LVS) @ 24.47.  It’s Ol’ Home Week as we’ve a History with these cos.



EDIT

(Always) Time for Management; But Professionally?, Not Quite Yet...

Just go off the phone with my Broker in CC.  She wanted to ask if she could be of assistance or if I was ready to fold self-managed into the account, there.  Told her she needed more coffee or a couple lines, for surely getting in the office @ 4:30 is taking it's toll.  I'm married to The Market and the Thrill isn't gone (yet?) [or maybe we just can't afford to get divorced!], either way...

Losses be Damned, Full Speed Ahead!

Making the Pick and Buying are the least of your concerns when managing Ports.  Learning how to take advantage of downturns is an art worth developing.  If you think a broker is going to make money for you in stocks not on Her Watchlist, boy do you have another thing coming. 

Best to take an interest and take charge. 

When you get that call offering you the "next great Gainer", at least know how to research the co.  I got a stack of prospectuses over here, unread- ready for the fireplace come Autumn.  Hell, I can't take the time to go through every fundamental (those I can understand) on every company.  My Clique and I do our own R&B.  Luckily for me, I consider it part of the fun in investing.  Not to mention the Quiz Fun we have on Friday Nights.

I'm lucky, there isn't too much pump and dump activity at the firms I deal with; but I don't like their "convenience store selection" of leads.  As I keep reminding the Brokers I deal with, there's always room for on more Used Car Salesman...

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