My Trading Account Status 6/14/2014

Here are my holdings in my trading account as of June 14th, 2014.

DescriptionSymbolQuantityDate AcquiredCost BasisMarket Value
AFLAC INCAFL10001/31/14$6,278.95$6,196.00
AFLAC INCAFL8903/27/14$5,540.75$5,514.44
NELNET INC CL ANNI12112/11/13$4,970.79$4,928.33

What a difference a couple days make. The Dow Jones Industrial Average dropped 102 points on 6/11 and another 110 points on 6/12. It did recover 41 points and a half on Friday 6/13, but the two triple digit drops were enough to wipe out my unrealized gains and bring me into unrealized loss territory.

Do I have an exit plan? Well, no. I know traders are supposed to have some sort of an exit plan to minimize their losses. They would take the loss and find another trading opportunity. As long as their gains for the year outweigh their losses, they would be making money.  Maybe I should devise some exit plan, but I am not worried about selling any of my holdings now just because they are all priced below the cost basis.  The unrealized loss on all my holdings are still under 5% (maybe I’ll consider that as the exit signal).

To be honest, I do not mind holding AFL or NNI for the long term. (Did I not mention that I am an investor at heart?) Currently AFL has a P/E ratio of 9.60 and NNI has a P/E ratio of 6.20. I consider both to be cheap, i.e. they are still well undervalued. Perhaps this is just another case of “Emotion Determines Market Price.” Plus, the dividend yield is 2.39% and 0.98% for AFL and NNI respectively. Even if their market price continue to stagnate I would still be receiving some dividend income.

Speaking of dividend income, I received a payment of $12.10 on 6/13 for my 121 shares of NNI. That explains the slight increase in my cash balance when compared with my last update.

My real bottom line on 6/14/2014: $16,730.49

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