A Good Loss

Back in October 2008, I sold my arb play in Landry's Restaurant (Ticker: LNY) for a nice 32% loss. Now I'm glad that I sold back in October because the deal was called off today. The stock declined 34% on that news to close at $8.16. When you're wrong, you simply have to admit your mistakes and get out.

Now that the market turmoil has returned, my portfolio is holding up well basically due to Genentech (Ticker: DNA) and Puget Energy (Ticker: PSD). I see Genentech gone by mid year at $100+ and Puget Energy should be closing very shortly. Hopefully, these arb plays will serve as a buffer in this crazy market.