Friday, June 15, 2007

Sold The Hype... NYMEX

One of the rules I have to learn is to not get caught up in the hype. Back in November 2006 NYMEX Holdings (Ticker: NMX) was a hot hot IPO and I wanted to get a piece of the action. I picked up some shares on the first day of trading at $137.95. This was well above the IPO price of $59. Of course I bought near the peak and it was dead money for several months. I decided to sell today at $144.85 generation a net gain of ~5% over an 8 month period. Even though I made a little $$$ on this trade, it was a very bad trade considering the risk and reward.

I used the proceeds from this sale and picked up some Goldman Sachs (Ticker: GS) at $228.19 and J Crew (Ticker: JCG) at $52.60. I realized I made a mistake in selling Goldman Sachs way back, but it’s time to get back in after yesterdays earnings report. Goldman Sachs is just a giant money machine. And what can you say about J. Crew… It’s simply one of the best apparel retailers out there.


Post a Comment

<< Home