Monday, January 08, 2007
Tormented no more
Up less than 0.1 percent today. Back in May I rolled the dice on TORM and lost big time as the stock proceeded to decline 50 percent over the next couple of months. I held on, and even added more shares below $2. It paid off, after bottoming at around $1.50, the stock has rallied to $3.40. I've been selling shares along the way and today I completely closed the position. In the end, it turned out to be a profitable trade (total profits of about $4,600). The stock has been moving up lately because the company announced a new contract. The details of the contract have not been disclosed, although I am sure it will help the company's bottom line. However, I still decided to sell because historically the company has had trouble generating big profits, and now that the stock is about 25 percent above book value, I think there are better and safer places to park my money. To my fellow tormites, I wish you well. I still think the stock could easily run above $4, but I'm just too risk averse to join you for the ride.
# posted by Stockcoach @ 6:52 PM 
