Nortel goes POP at the open!
filed in My Investments on Dec.23, 2008
So yesterday, last week AND the week before I stated that Nortel cannot go bust.
The price at which I began to follow the fall was around 0.50/share and felt that 0.24 was a comfortable bottom. Well the bottom touched yesterday at 0.22/share and then just rocketed up to 0.32/share!! Tell me a gain of 33% is not nice. Oh yes it is haha.
So my holding initially was about 3500 shares at 0.25, but yesterday I jumped in and got another 3500 shares at 0.23/share to bring my average price down. Today a breaking news came out that an offer of $1B for one of its units has been put on the table.
My exit price on this stock is going to be $1/share. I can see this on the horizon as other companies start bidding on (NT).
Overall yesterday the markets were in the red before closing flat. This showed that resistance to hit new lows is there and with the low holiday trading volume, the “big” trading won’t resume until January when we might see a broad based rally. So no, like one person asked, there is not going to be a rally in 2008 as far as I can see.
Here is the Bloomberg open:
Yesterday (GM) didnt touch $4 but I did place change to order to market price and got out at $3.84 which makes me a profit of $255 on the 300 shares I owned. I know, I could have sold for higher before, but greed came into play. Lesson learned! Now (GM) is falling mainly because stock holders dont feel confident that GM can survive with the bailout and will go under regardless. This is interesting to watch as the share prices have got down a lot in 2 days and there might be a minor rally before it continues to fall.
I dont think GM can survive the way its structured at the moment either so dont think I would hold onto shares too long. I am tempted to short GM right now. Just going to see what mid-day rally comes about. Since its fallen so much at the open today, there might be value pickers who might grab shares and then dump them after the price goes up a bit. Don’t get suckered into that vortex!
(XOM) is another stock I”m watching today or tomorrow. With the falling OPEC prices, I am hoping for a $73/share entry. I know that is below its current price, but I’m patient and will wait for that price to come.
(AAPL) fell like a rock yesterday and I’m glad I didnt hold anything but right now the prices looks pretty tempting. I might get in at $84/share if this can come closer to the ground for me. Again, patience in the markets will garner more profits in the long term.
Happy Investing!
Aman, MBA
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