Comments on: Stock Sale – PZZI

By: DividendDeveloper

DividendDeveloper — Mon, 01 Dec 2014 05:44:43 +0000

Wow, sounds like you got lucky too! Glad we both got out of it decently. You’re right, with a plan, a lot of the risk is gone, without sacrificing too much of the upside. Just need the discipline to stick with it! Thanks for stopping by!

By: Allan

Allan — Mon, 01 Dec 2014 04:30:40 +0000

Hi DD,

Ahah! I like the “I have no idea why I bought…”. It’s funny how we can make important decisions without any kind of logic backing it.

My first stock purchase was PJC.to. I bought it at 18,49$ in november 2013. Now it’s almost worth 28$. I remember that my analysis was pretty thin and I ended up buying at a moment where they decided to sell their shares in Rite Aid. With the money, they said they would buy 23,000,000 of their own share and give a special dividend of 0,50$ per share.

I simply thought… hey 200 shares times 0,50$ is a 100 bucks very fast. And if they buy 1/4 of their outstanding shares, the share price should go up.

I did look at some metrics but I really didn’t know what I was doing.

It turned out that I made a good decision but… it could have turned sour!

It always work better when we have a plan. I’m glad I found documentation about dividend growth investing. It really changed my view about the stock market.

Keep investing my friend

By: DividendDeveloper

DividendDeveloper — Sun, 30 Nov 2014 18:18:14 +0000

Yeah, it was a perfect storm of stupidity. Wrong place, wrong time, and too much extra cash. Oh well, glad I have my plan in place now!

By: GetRichBrothers

GetRichBrothers — Sun, 30 Nov 2014 04:31:13 +0000

Honestly, a pretty comical article. It’s funny how we can be lead astray if we don’t have an investment plan like the one you put together to keep us on track, eh? I love having a guiding light so that when I’m analyzing an investment opportunity (stock market or not), I can simply say, “It doesn’t fit my investment plan” and walk away without being attracted to a long shot.

Glad to see you got out with a small profit and learned a lesson along the way! Frothy markets like this make great opportunities to cull weaker portfolio options if there is such a need.

– Ryan from GRB

By: DividendDeveloper

DividendDeveloper — Wed, 26 Nov 2014 15:01:40 +0000

Yeah, if the gains don’t even cover the transaction costs, there’s no real point in doing anything with it. If that was the case with PZZI, I probably would have just kept it as well. Thanks for stopping by!

By: Seraph

Seraph — Wed, 26 Nov 2014 10:56:08 +0000

Never heard of the stock, although I took a look at it and I’ve got to agree – financials don’t look so great. Good thing you got out with a profit!

I’ve got one of those “I don’t know why I have this in my portfolio” stocks as well. Just doesn’t seem worth it to sell, though, as it’s only one share and the cap gain I have on it wouldn’t even begin to cover the transaction fee I’d incur selling it, so I just leave it in my portfolio.