My Trading Account Status 6/21/2014

Here are the holdings in my trading account as of 6/21/2014:

DescriptionSymbolQuantityDate AcquiredCost BasisMarket Value
TOTAL$16,981.04
AFLAC INCAFL10001/31/14$6,278.95$6,310.00
AFLAC INCAFL8903/27/14$5,540.75$5,615.90
NELNET INC CL ANNI12112/11/13$4,970.79$4,963.42
CASH$91.72

I didn’t make any trades this past week, so there is nothing exciting to report here. Both NNI and AFL went up since my last update, but only AFL moved back into unrealized gain territory.

AFL has been hovering around my acquisition price since April. I am tempted to take advantage of this price hovering by selling the 100 share lot with just a bit of gain, then buying them back when the price drops again. But I always have the feeling that the price will keep on going up once I sell (Don’t we all?). For now, there is really no clear signal to sell. The last selling opportunity (for the 100 share lot) was during 3/7 – 3/11 when the price was between 64.73-66.01. Perhaps my emotions are getting the best of me. This is why I need this blog, to work out my thoughts and to keep my emotions and impulses in check. I will hold my shares until a clear selling opportunity arises.

I do have something related to report here. On 6/20 I sold COH at a loss for $34.69 a share (with a cost basis of $41.97. Ouch!) in my investment account. This has nothing to do with my trading account right? But if I buy COH in my trading account for the 30 days period after 6/20, I won’t be able to claim the loss on my 2014 tax return.

Am I planning on repurchasing any shares of COH after the 30 days period? Well, there are a couple things on my mind:

  1. The current dividend yield is 3.89%. If the price drops even lower, the dividend yield would become very attractive. We will have to see if management is going to maintain the same level of dividend payout.
  2. COH started this year at around $56 a share. As of this writing, the market price is $34.73. I believe the price will have selling pressure for the rest of this year from people who are looking to harvest tax loss. I don’t foresee the price of COH moving up significantly any time soon. On the contrary, I think (though I might be wrong) it may going well under my exit price of $34.69.
  3. In the case where the price does climb back up to the $40+ range from now until 7/20, I will have to just swallow my pride and move on to another stock.
  4. I can repurchase COH in my investment account or in my trading account (or maybe both). However, I only have $91.72 of cash in my trading account now. I will either have to fund my account or sell of my current holdings to repurchase shares of COH.

So the answer is: It depends. There are many factors to consider, but if I do repurchase COH, I have to be careful not to buy any shares of COH until after 7/20.

My real bottom line on 6/21/2014: $16,981.04

 

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