V (VISA) Sell or hold?

**kork13** · 04-09-2010, 10:29 AM

Easiest solution: sell half. You can change that based on your expectation for the market (sell more if you expect it to go down, or less if you expect it to continue upward), but in general, I'd say a "sell half" philosophy is a workable one.

**Broken Arrow** · 04-09-2010, 11:26 AM

Hey there, glad you're still around with those stocks. I remember our lively discussions about them.

The 52-week chart at least looks quite bullish. As you probably remember, I thought it was too risky to be holding on to it back when we were experiencing the credit crunch, but at this point, I would say that is no longer a serious issue.

But you probably knew that already, and your real question is near future market trends. Truthfully, I'm don't know. By the way, why do you and your co-workers believe that there is a market correction coming? I'm not disagreeing with that possibility. I'm just wondering what your take on it is.

If you still look at analyst reports, the current price is very close to S&P's 12month target of $100. For what it's worth.

In the end, and considering that the stock pays very little dividend, I would definitely take some off the table. Half is good, but really, whatever you feel most comfortable locking in.

**tripods68** · 04-10-2010, 10:48 AM

@Kork...Great suggestion, I thought about that as well. I'll reduced my holding by 50% Monday.

BA,

I remember we had this discussion before. I figured VISA is not tied to any financial problem so decided to hold it long. I'll hold the remaining half and let it ride long for now. For what it's worth, my biggest regret was selling APPLE @ 30 and now worth $230 per share...imagined that

My co-worker follows the market on a regular basis and has been shorting the market for the last several months. He thinks the S&P bubble will burst eventually based on high P/E ratios of these company. Without real financial reform history will repeat itself. No good "real" economic data supports why the market should be nearing 11K. In that sense, I tend to agree. Just to be sure to lock my gain, I put trailing stops loss @ 85. I also bought ETF index that short (inverse 2x) financial sector IF it does come true. Likewise, i also bought ETF index that track financial sector on the upside.

By the way, i still own quite a bit of C (Citigroup) 1100 shares that I bought @ 4.25 per share. I'll sell half portion Monday to lock in profit, and buy and hold strategy on the other half portion.

**Broken Arrow** · 04-11-2010, 02:40 PM

AAPL, I regret underestimating the iPad's impact on the stock. Ever since I heard its announcement, I seriously considered buying in. But I didn't.

"Inventory rebound" and "liquidity bubble" are ideas that I've been toying around with for quite some time. I really don't think the current market's value is fundamentally sound either. Unfortunately, other traders do remind me in subtle ways that, sometimes, you're trading for the trade, not necessarily the fundamentals. I don't know.

C is still a volatile landmine. I think it's maybe... the only two big bank left-- besides maybe Bank of America?-- that would love to pay back their TARP but hasn't been able to. To me, that's all I need to know.

**tripods68** · 04-12-2010, 06:52 AM

Update:

SOLD 75 shares of V @ 92.77. I figured I only keep 25 shares going forward with trailing stop @ $87. Sold 600 shares of CITI and reducing 50% of my holdings....

Excellent day to say the least which is the most profit I've ever made trading so far.

Back to basic investing 101 again, scanning the universe for potential new buy.

BA, got any stock tip for me...?

**Broken Arrow** · 04-12-2010, 07:24 AM

Congrats on the excellent trades!

As for stock tips, you know my opinions aren't that good. If they were, I'd be retired by now on some tropical island somewhere, sipping fruity drinks with rolled up $100 bills.

But just for fun, PALM is looking for a buyer. If you think they will find one, that stock is likely to double overnight. Or maybe play with RIMM and their roadmap with recently-acquired QNX?

That or there's always distressed residential real estate we can still play with. The stimulus may be extended into this summer, but once that ends, it is inevitable that sales volume will slow. Could be good for a short play.

That or find some way to wager on the direction of the Greek debt crisis, or if you really want to go big, bet on China's Yuan somehow. I don't have any specific suggestions though.

However, I am learning that I am a highly defensive trader. Even if I do trade, I really try not to lose too much money in the process. So, the above suggestions are just for your amusement sake more than anything, because I personally won't be touching it.

**disneysteve** · 04-12-2010, 08:09 AM

Congrats.

I think trailing stops are the most under-utilized trading tool. They let you lock in profits while not missing opportunities for additional gains and do it all without having to constantly monitor your holdings.

**tripods68** · 04-12-2010, 08:11 AM

BA,

I used to own palm for years but dump it after RIMM became very popular in 2004....and staying away completely from REIT or any real estate investment/funds. Commercial real estate the next bubble if not already burst. Be safe to stay away...and i mean AWAYYYY!!!!

I got some potential buy in my list with very limited price range (enter/exit strategy).

GE $18 target sell 21

MSFT 29 target 33

BEN (I used to work for) I remember owning this stock at 36 per share now it worth $114 per share. Go figure!

WFC was 28 now 32 out of my price point entry.

(Bershire Hathaway) BRK-B shares @ 80.00 I see this stock as my next legit LONG BUY. Many upside to this stock.

AAPL is a very good play, but at $242 per share, it's expensive for my taste right now. If I do buy it, I don't know how much to own for LONG. I own 3 apple (Imac, two ipods) so imagine how many people will be upgrading to apple product...but appreciate your take on this stock.

V (VISA) Sell or hold?