Patrick's Rants



4/28/2011

Discharging

Filed under: Money,Stocks — site admin @ 8:32 pm

I did ride ABAT down, I even bought more shares. I’m in pretty heavy for my account; a little heavier than my own rules say I should be. The question is, with an actual class action filing against ABAT does it make sense to hang on? I don’t know that answer and it gives me pause. First, none of the lawyers offices appear to have an actual “lead plaintiff”. That could mean that nobody has enough of a loss to be considered. They could all be little traders/investors like me. The last time I had a stock (NXG) that nosedived on me, I started trading it at the lower range – then stopped believing in it and wound it down at a 0.91% total gain. I bought and sold it over 15 months. .91% is still a gain, but I could have recovered and then some – .91% is really just a barely recovered. Had that been in a taxable account it would not have even had any gains as I would have had to count my options premiums separately – as it was I counted them as part of my overall gains on the shares. Technically, tax-wise, options are separate sales – in an IRA where they are, today’s gains don’t matter in the same way.

So. I have to watch some more. I try not to trade on fear (my own). Nor do I try to “cut my losses”. I have bought several times on the way down and averaged my cost per share down. I’ve started selling covered calls against my holdings and if I get called out, I have my eye on another stock that has been trading in about a $1.00 range – 8 times in the last six months – that could really ramp up my balance.

I have not gleaned how long these potential suits tend to run and I may be on the losing side of time – but I do have a lot of years to make up for what look like hefty momentary losses. Perhaps I will spend part of that make up time reading the D & O Diary for insight.


I’m in heavy in terms of the percentage of my account. Don’t take what I write to mean you should buy/sell or transact in any way in ABAT.

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