Home of the MODERATE TRADER |
|
Trades done in 2003
January 2003 Sold On January 15, 2003, a decision was made to sell 100 shares of Corning Incorporated (NYSE symbol: GLW). These 100 shares were sold the same day at $4.65 per share. This equity was bought on February 6, 2002, at $6.62 per share and this trade generated a short-term loss of $237.10. A decision was made to sell 250 shares of Lucent Technologies, Inc., (NYSE symbol: LU). On January 15, 2003, this stock was sold at $1.77 per share. This trade generated a long-term loss of $6,661.50. On January 15, 2003, a decision was made to sell 600 shares of Nortel Networks Corporation (NYSE symbol: NT). These 600 shares were sold the same day at $2.43 per share. This trade generated a long-term loss of $2,602.95 and a short-term loss of $375.94. A decision was made to sell 600 shares of Sun Microsystems, Inc., (NASDAQ symbol: SUNW). On January 15, 2003, six hundred shares were sold at $3.81 per share. This trade generated a short-term loss of $1,470.85 for 300 shares that were bought on February 28, 2002, at $8.61 per share and a short-term gain of $0.45 for 300 shares that were bought on August 6, 2002, at $3.71 per share. On January 15, 2003, four hundred shares of Vitesse Semiconductor Corporation (NASDAQ symbol: VTSS) were sold at $2.67 per share. This trade generated a short-term gain of $612.50, or 140 percent. The cash received from these trades was added to the existing cash in our Model Portfolio and now there is $32,731 in cash in our Model Portfolio. After these trades, on January 15, 2003, the asset allocation of our Model Portfolio was 43 percent equities and 57 percent cash. March 2003 Bought ADR's of Ericsson LM Telephone (NASDAQ symbol: ERICY) fell below our buy target level of $5.75 per ADR. The company is a leading supplier of mobile phones and telecommunications equipment. On March 10, 2003, five hundred ADR's of Ericsson LM Telephone were bought at $5.66 per ADR. The total cost to acquire these ADR's was $2,850.15. Approximately three months ago 260 ADR's of Ericsson LM Telephone that were in our Model Portfolio were sold at $8.53 per ADR for a total net of $2,197.65. We have added an additional $652.50 to that amount and we were able to buy approximately twice as many ADR's of ERICY. This equity will be held in our Model Portfolio until it reaches approximately $9.75 per ADR and then it will be sold. As of March 14, 2003, the asset allocation of our Model Portfolio was 45 percent equities and 55 percent cash. May 2003 Sold On Friday, May 2, 2003, the ADR's of Ericsson LM Telephone (NASDAQ symbol: ERICY) neared our sell target level and 500 ADR's that were in our Model Portfolio were sold at $9.58 per ADR. This trade has generated $4,769.50 in net cash, after commission. In less than two months this equity has generated a gain of $1,919.35, or 67 percent. A decision was made to sell 70 shares of Vertical Net, Inc., (NASDAQ symbol: VERT). The company used to own and operate over 50 websites designed as online business-to-business communities. Recently the company sold its websites and plans to generate its revenues from the sales of software. Due to this change of direction by the management a decision was made not to hold this equity long-term, but to sell it now. On May 7, 2003, seventy shares of VERT were sold at $1.30 per share. The sale of this equity has generated $72.95 in cash proceeds after commission, and a long-term loss of $998.25. In Taxable accounts, this loss can be deducted from the gain realized on the sale of ADR's of Ericsson LM Telephone, thus reducing the tax payable on the gain from the sale of the latter equity. The cash proceeds from these trades were added to the existing cash and now there is $34,826 in cash in our Model Portfolio. As of May 16, 2003, the asset allocation of our Model Portfolio was 42 percent equities and 58 percent cash. June 2003 Sold On Monday, June 9, 2003, all 280 shares of Intel Corporation (NASDAQ symbol: INTC) were sold at $21.43 per share. This trade has generated $5,980.45 in net cash after commission. Although our initial objective was to hold this stock long-term, a decision was made to sell it while it's at the recent high level. This stock was held in our Model Portfolio for slightly over eight years and was sold with a long-term gain of $4,590.50, or 330 percent. A decision was made to sell 100 shares of Sun Microsystems, Inc., (NASDAQ symbol: SUNW). Although the short-term trend for this stock appears to be upward, long-term this equity could continue to descend and test its previous support level of $2.42 per share. Therefore, a decision was made to sell 100 shares of SUNW. On June 12, 2003, this stock was sold at $5.47 per share. These 100 shares were bought on March 20, 2001, at $18.82 per share. This trade has generated a long-term loss of $1,374.90, or 72 percent. For tax purposes, in taxable accounts this long-term loss can be deducted from the long-term gain generated by the sale of shares of Intel Corporation, thus reducing the tax payable on the gain from the sale of the latter equity. The cash proceeds from these trades were added to the existing cash and as of June 18, 2003 there was $41,355 in cash in our Model Portfolio. Furthermore, on that day the asset allocation of our Model Portfolio was 35 percent equities and 65 percent cash. July 2003 Sold On Thursday, July 17, 2003, all 63 shares of Hewlett-Packard Company (NYSE symbol: HPQ) were sold at $22.34 per share. Hewlett-Packard Company acquired Compaq Computer Corporation on May 3, 2002. There were 100 shares of Compaq Computer Corporation in our Model Portfolio. For each share of Compaq, Hewlett-Packard issued 0.6325 shares of its stock and there were 63 shares of Hewlett-Packard Company in our Model Portfolio. We were not enthusiastic about this merger. Initially, our objective was to hold HPQ long-term until the stock reaches approximately $46.50 per share and then sell it. Although long-term this equity could reach our sell target level, short-term this stock is overvalued and could fall below$14.95 per share by mid October 2003. Therefore, a decision was made in July 2003, to sell this equity. This trade generated a long-term loss of $1,020.14, or 42 percent. If this stock were to fall below $14.95 per share, 100 shares would be bought and added to our Model Portfolio. A decision was made to sell the stock of Microsoft Corporation (NASDAQ symbol: MSFT) on the same day, July 17, 2003. All 160 shares were sold at $26.74 per share. Although our initial objective was to hold this equity long-term, at least five years, a decision was made to sell this stock while it is at its high level. This trade generated a long-term loss of $2,526.35, or 37 percent. In the second half of July 2003, a decision was made to sell the stock of LSI Logic Corporation (NYSE: symbol LSI) while it's at a high level. On July 21, 2003, all 400 shares were sold at $7.91 per share. This trade generated a long-term loss of $2,136.45, or 40 percent. The cash proceeds from these trades netted a total of $8,791.17 after commission and were added to the existing cash. Afterwards, there was $50,163 in cash in our Model Portfolio. Furthermore, on that day the asset allocation of our Model Portfolio was 21 percent equities and 79 percent cash. August 2003 Sold A decision was made to sell the stock of Delia's Corporation (NASDAQ symbol: DLIA). Although our initial objective was to hold this stock until it reaches approximately $3.70 per share due to the recent events a decision was made to sell this equity now. On July 31, 2003, Delia's Corporation announced that it has agreed to be acquired by Alloy, Inc., (NASDAQ symbol: ALOY). Alloy, Inc., has launched a tender offer to acquire all outstanding shares of Delia's Corporation for cash at a price of $0.928 per share. It is not likely that another company would step in and make a hostile bid for Delia's Corporation therefore the price of $0.928 per share is the highest price the stockholders of Delia's Corporation could get for their shares. The shares of DLIA could reach a higher level on the open market if investors were to believe that another company may step in and make a better offer, but it is not likely to happen. These stockholders who tender their shares of Delia's Corporation will have to wait several weeks until they get paid for their shares. On August 7, 2003, all 1,000 shares of Delia's Corporation that were held in our Model Portfolio were sold on the open market at $0.90 per share. The difference between the tender offer price and the price obtained by selling the stock on the open market was $0.028 per share, or a total of $28.00 less for 1,000 shares. The main advantage was that investor would be able to use the cash immediately in a marginal account, or after three days in a regular account, versus tendering the shares to Alloy, Inc., and then waiting several weeks to receive the payment for this equity. The cash proceeds from this trade were $880.45 after commission, and it was added to the existing cash in our Model Portfolio. This stock was bought on October 9, 2002, at $0.43 per share and this trade has generated a short-term gain of 96 percent, after commission. On August 20, 2003, a decision was made to sell Ride Aid Corporation (NYSE symbol: RAD) and 400 shares were sold the same day at $4.41 per share. The cash proceeds from this trade were $1,744.50 after commission, and it was added to the existing cash in our Model Portfolio. This stock was bought on February 25, 2002, at $2.57 per share, and this trade has generated a long-term gain of $697.10, or 67 percent, after commission. The cash proceeds from these trades netted a total of $2,624.95 after commission and were added to the existing cash. As of August 21, 2003, after the market closed there was $52,809 in cash in our Model Portfolio. Furthermore, on that day the asset allocation of our Model Portfolio was 18 percent equities and 82 percent cash. September 2003 Sold A decision was made to decrease our holding of the stock of Applied Materials, Inc., (NYSE symbol: AMAT). On September 16, 2003, half of the shares that were held in our Model Portfolio were sold at $21.40 per share. The cash proceeds from this trade netted a total of $3,404.50 after commission and were added to the existing cash. As of September 22, 2003, after the market closed there was $56,236 in cash in our Model Portfolio. Furthermore, on that day the asset allocation of our Model Portfolio was 14 percent equities and 86 percent cash. |