Tuesday, May 5, 2009

Should I sell the stock?

As per my prior posts, my employer had a very difficult time the past two years. Our stock fell from the 80's to under 3 dollars. Of course, I had a small position and took a loss during the ride down. Luckily, I became convinced it was worth risking some money to get in. Ultimately, I purchased 400 shares for under $5 per share. With our stock price back above $10, my enormous loss has become a very small gain as our stock tripled in the past few months.

This is my conundrum. Part of me says take (at least some of) the profit. That is a huge move and my $6,000 position is the largest individual position I have ever had in one stock. Nevertheless, most of my portfolio is invested in a diversified basket of mutual funds. Since I think the stock has the potential to double again (if the economy improves), I am going to keep it for now.


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