Wednesday, December 15, 2004


Sold all my PTA shares

I decided to sell all my PTA shares at $1.93 today. I bought them only a few weeks ago at $1.85. I usually don't flip stocks so quickly, but I had a change of heart about my decision to buy, and decided to bail while I was still slightly ahead. Insurance companies are very hard to value, and even though the stock is trading at well below book value and just had a nice profitable quarter, a few things I read on the Yahoo messege board written by people who appear to know the company a lot better than I do indicate that there are good reasons why the stock appears so cheap. My suspicions were compounded last week when the company issued convertible subordinate debt to bolster its capital base at terms that appear to indicate a relatively large risk premium. So I think I'll stay on the sidelines for now. There seem to be safer bets out there, with equally good upside potential.

You have a nice site here. It's refreshing to see someone actually post their results which we can verify based on your holdings. I also enjoy the microcap realm and we have COBR as a holding in common. Some of my other holdings that you might find interesting include AINN, RNDC, GEF, MTEX, NEOP, MAPX, MAXE, MPWG, and FORD (not the car co.). I would be interested in any comments you have regarding these. Again, great site.
Thanks for the kind words. I will take a look at your stocks, as I always appreciate knowing what other thoughtful investors are holding.
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