Monday, September 11, 2006

My First Two Purchases


So I decided to take this “I have nothing to lose” approach before the idea of tracking things in a blog form entered my mind. I put together a list of stocks to watch, which I can discuss in more detail in future posts. I watched the stocks in the list for a few weeks and then selected two. I decided that I would buy one as a short term play and the other as a longer term holding.

The first stock I decided on was SCUR – Secure Computing Corp. I looked at it initially because here was a stock that had come down. It was affordable to a little guy like me and the charts showed that it was starting to turn upwards. Although it was not probably an ideal buying opportunity for the pure chartisits, I had really nothing to lose and wanted to get in on an early opportunity. I bought 700 shares at $5.56 with a $29.00 commission bringing the total to $3921.00.

I thought that for once I would get in early because one of the knocks about being a small investor is that we are always late to the party. Well now I’m in early and even if I have to wait a little while for the party to start, I won’t get left in the cold watching from the outside. If you look at the chart from Yahoo finance, you’ll that the signal line on the MACD was still negative but trending up while the price of the stock had not yet crossed it’s 30 day moving average. But hey, I’m trying to anticipate here. To date SCUR had been up and down and closed on September 6th at 6.89. That brings us to $4,823.00 not too bad for under a month.
The second stock, and my long term play, was a bit more expensive. CLRK – Color Kinetics Inc. was chosen because I believe in their product. I think as energy costs rise more people will be looking towards low cost alternatives like LED lighting. I also like their balance sheet. They have a lot of cash on hand and no long term debt. I also like the licensing agreements they are entering into. It is a great way for them to get revenue and keep costs down. I bought 400 shares at 16.96 plus $29.00 commission brings the total to $6,813.00. Yesterday they closed at $16.10 so I’m not doing so good there but I think they are a longer term winner. Stand back on this one.

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