DEAD MONEY

"PASSION, PERSISTENCE, AND PATIENCE"


Future market is very strong and the market is poised to open higher and tech is on the lead, which is not surprising given the severe oversold condition. I am looking to trim some on strengths and may add a couple of my favorites for a really short trade.



ATA fell by more than 25% in the early morning, after a so-so earning report. I do not believe it was warranted and added some at $12.20. I still believe there's a lot of value of its solar business spin-off and it still could get to $20 later this year. I am having a second thought, while listening to the management during the conference call. The management appears to be inept, lack of confidence, and clueless. Maybe I should cut loss and run. I sold the shares bought in the morning for a small gain. Unfortunately, I have to go out for some personal business and the stock continued to fall. This is terrible. I would have had a really good day if not for this dog. I am a bit depressed and frustrated. The stock has been decline for the past few days and I should have been alarmed and trimmed some in front of its earning report in order to avoid the disaster like this one.

Despite my emotions, I have to look forward, not backward and it appears to me that this will likely be dead money for a while. The spin-off will not be materialized until later this year, and even then its valuation becomes questionable after today's report. Therefore, objectively, I believe I should sell this dog, preserve whatever capital remains and fight for another day.