Tuesday, July 28, 2009

Losing Positions Analyzed

Thanks to the recent upturn in the stock market, most of my remaining positions in my IRA have positive returns. Below, I will analyze the remaining losers:

  1. CIT:    At a negative 96% return, it would be my biggest loser but for the fact I only owned 5 shares. Total loss is $106.00 on current shares. Although I believe these shares will eventually go to zero, the transaction cost to sell them would exceed their value. Thankfully, I sold most of my shares before the loss.


  2. Monsanto:    I built this position in the last 6 months. At 2.3% of my portfolio, it is a significant position and the 2.5% loss is not appreciated. Nevertheless, I am going to hold onto this stock as a long-term investment.


  3. Sonic:    Proving that a good product is not necessarily a good investment, I lost a few hundred dollars on this investment before closing out most of it. My remaining 15 shares are down 5.81%. Because the remaining position is small, I am going to keep the shares and see what happens.


  4. Exxon:    Like Monsanto, this is a large position that I built during 2009. The 1.1% loss is the result of an 11% loss on the shares I purchased in June. Shares bought in March and May are performing better. Because I believe some exposure to energy is a risk, I plan on keeping the investment. I expect this position to be "even" by the end of 2009.

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