I had to clear my mind of the InterMune (Ticker:
ITMN) trade yesterday, which was executed poorly. I went in with a tiny position in InterMune with the goal of making some quick $$$. I did not evaluate the downside risk at all. I was on a roll on my trades and thought this was another easy $$$. I only had one losing trade this year so how can I go wrong??? Well, the FDA gave the thumbs down and the stock tumbled 80%. Fortunately, I was not that greedy and initiated only a small position, but I’m sure some people were wiped out from this trade. I’ve learned a lot from this small mistake…
Ok, now back to business and back to basics. I picked up a bunch of SkillSoft PLC (Ticker:
SKIL) today at $11.15. If you remember, I played this one a few months back and didn’t quite work out as expected. Now, it’s a different ball game. Everything is settling down towards a closing on May 24. I’m looking at a 0.90% return over a 2.5 week period (17% annualized) based on a closing price of $11.25. I view this as a very low risk trade…