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Dynegy (DYN) stock took a massive drop after it reported paying off debt, but then took a nice rebound. I waited for the stock to drop rock bottom, then make its way up. I have a limit order for 220 shares of Dynegy at $4.65, but unfortunately the market is on a holiday schedule.

Dynegy was also upgraded by several firms to $5.10

I plan to hold Dynegy for the longterm, so I may sell a few shares if it reaches that target, then buy it again if it goes lower. This was I can keep the stock longterm, but extract some profit along the way.

Dynegy looks like it’s back on track and ready to make a rebound. In the short term I still think the stock will be shaky, but 2+ years everything looks alright.

Bought on September 13th as an experimental trade, SCON turned out to be quite a loser. The original investment was a paultry $387, so I decided to let it stick around to see what happens. The company had a decent product aimed towards the telecommunications market and a lot of good press. The last few weeks the stock slowly started rising, jumped over 30% in one day, and today finally hit my target sell price of $1.40.

Today marked the day when Superconductor Technologies (SCON) finally paid off. I was originally trying to just break even, but it paid off holding it. It at least paid off the loss I made on JBL two days ago.

Jabil Technologies (JBL)

Bought 45 shares at $25.84 one day, sold the next day for $25.35 when the stock started slipping despite a slightly better than expected earnings report. -$22.05

Today I bought 45 shares of Jabil Circuit Inc (JBL) at $25.83 a share. I put some money on them because they provide the inner workings of today’s modern gizmos…not to mention they were reporting earnings today.

Jabil Circuit Inc. reported after the market closed that sales rose 21% and earnnings climbed 32% for the quarter. Earnings estimates were beat by $.01, not much, but this makes them ripe for a slow advance during the holiday season. Hopefully I can get a nice 8 or 10% gain during the next few days.

45 shares JBL @ $25.83 = $1162.35



Shares of JBL must rise to $27.90 for me to get an 8% gain.

On this recent post I detailed what progress I should be making after final exams finished. I am at home in Houston now and have somehow been distracted everyday.

This is no good. I’ve set out goals for myself and I have not met them. This needs to change. With whatever small amount of spare time I get during my two weeks in New York, I should try to:

• Finalize updates on Timber Trace website.
• Inquire about best options for opening 2nd brokerage account.
• Get Resumite ready to do business (finalize all sample sites).
• Add new content to online business everyday.
• Finalize traffic alleviation proposal on I-35 in Austin.
• Create new investment ideas.
• Have fun.
• Meet my goal of making $5,000 by 12-31-2004.

If you see me moseying around anywhere, make sure you ask me if I have first completed ALL of the above!

I found this article about Mario Gabelli interesting. One quote I particularly liked was:

Gabelli made it clear that his firm only hired PhDs – and by that he means

“poor, hungry and driven.”

I love it!

Today when golfing with friends I realized how much I like golf just for the business aspect of it. The comfortable, open and semi-formal aura of the golf course makes it an ideal spot for personal and business talk.

On another note,

Everytime I view NevBlog, I feel it emulates The Kirk Report more and more. This is not a bad thing since I greatly respect his dedication to the market and desire to help the little guy.

Tommorrow (Sunday) I am going for an 18 hole round of golf, then Monday I finish my 2nd to last semester of college. After Monday I need to focus on:

• Creating new investments.
• Opening my 2nd brokerage account.
• Getting Resumite Personal Sites ready to do business.
• Adding new content to business.

Here is my Financial Update for 12-11-2004:

General Account – $963

Business Balance – $1,683

Spending Account – $431

Investment Account – $873

Permanent Savings – $3,040

CD Savings – $5,039

Stock Portfolio Value -$5,104

Credit Card Balance – $0

To make extra money I’ve always designed websites. Now that I’m done with final exams for the week, I can concentrate on Resumite Personal Websites (I have set a goal to launch in on December 15th).

I try to start small businesses all the time. Since I’m a full time student, I look for businesses with low/no overhead, low entry costs, flexible hours and good returns for my time. My first real business from high school still brings in more money than my job, and I spend less than 20 minutes a day on it. For Resumite, I decided to do a different take on standard website design because it is a very saturated field. Resumite will be a simple business to start, and 100% profit (especially since I already own a dedicated server for hosting). All I need to do is market around campus and online.

-About Resumite-

-Personal Resume Websites (Resume + Website = Resumite)

-Users can have their own yourname.com website to put on their resumes and business cards.

-Price: $50 for basic package. Includes 1 year hosting, domain registration and a choice of sample sites.

–Check it out – It is still in the construction phase.

Syntel (SYNT) and Dynegy (DYN) are both down substantially (several hundred dollar losses in each). The surprising thing is that Superconductor Tech (SCON) is still going up, the one stock I didn’t have high expectations for.

Feel free to drop me comments on trading strategies etc, but keep in mind I generally hold shares for 3 months to 2 years. I have had stocks in the past that dropped dramatically, but holding on to them for 6 months reversed those losses into big gains. If you are not careful though, those losses can turn into even bigger losses.

The reason behind this post is to show myself that no matter how confident you are about a stock, it can still play games with you. Fortunately I have longterm faith in Dynegy and Syntel. Dynegy will be a several year hold, and Syntel will be held for approximately 6 more months (based on current situations).

After coming back from a final exam, I checked my Dynegy (DYN) stock as I knew they were making a big announcement soon. I saw the big red numbers that read – %10 and immediately went rummaging through the news.

Deciding to keep my investment or run for the hills with what I still have (I actually bought the stock lower than what it fell to, so I am not in a loss as yet) I noticed why it had dropped. Turns out they are paying off debt (good), and the bottom line for yearly earnnings will now take a big hit (bad) because of it.

I evaluated my stance on this position: Longterm investment with a minimum holding period of two years. I have confidence Dyngy will get back on its feet when the initial hit clears. It may take a few years, but this one is for the longterm portfolio.

The lesson learned here is how fast your luck can change. Just 12 days ago I wrote an entry bragging about how well DYN was performing!