Sold some Select Comfort, closed AMD
I sold half my holding in Select Comfort (SCSS),
a mattress maker, because it was getting to be too big a share of my portfolio.
It doesn't seem overvalued, but it doesn't really look undervalued, either, so
I'll look for somewhere else to invest. I bought it in November 2004, so it's
up over 70% in less than a year.
Nice!
My tendency to sell half of a
holding when it's doing well sometimes drains me of a lot of potential growth
(look at my CEDC investments), but it keeps me from being nervous about the
performance of any particular company, so I'm happy. And sometimes the stock
will drop and I can reacquire my missing shares
cheaper.
I also closed my first option
holding. I purchased $15 calls on AMD (that's the right to buy AMD shares for
$15 each) in October at $6.20, and I sold them today at $13.30. Over 100% gain
in two months!
I was a little nervous
about buying options, so I didn't invest much money at all. (I understand that
there was a significant chance I could have lost every penny, rather than
doubling my money.) I could have gained 30% just by buying the stock at that
time, without the massive volatility and risk. I still lean much more toward
long-term purchases, so I'll continue to prefer normal stocks to options, but I
will add puts and calls to my potential
repertoire.
My portfolio is once again
looking cash-heavy, so I'll be looking for more places to invest. I would love
to invest in an LED light manufacturer with big plans -- that's the future of
lighting, I think.
Filed Fri - December
16, 2005, 10:13 AM in
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