Wednesday, June 2, 2010

Bank Me... So Who Wants To Be A Billionaire?


Apparently, Harry does! HWD finally broke above the $1 billion market cap level yesterday. It didn't close with a $1 billion market cap yesterday, but managed to today... Let's see if Harry continues to be alpha. About this time last year, Harry was very, very alpha and a lot more hypnotic than usual.

I'm still a bit disappointed in myself. Why did I think that those 60 something pips on GBP/USD the other day were screaming "bank me"? To make matters worse, I kept thinking I shall not take the bait and make them wait all the way up to 1.475 today...

I'm keeping an eye out on the Euro Heroes instead. Everyone is waiting for the EUR/USD to break below 1.20, I presume. Is it really a given?

What's up with all the politicians quitting recently anyway? Perhaps I should think long and hard about whether I should be spending so much time trading too.

Finlay bondholders are expecting an approximate payout of $0.048 on the dollar on a proposed reorganisation plan. As usual, I am voting against this plan - not least because I ended up paying on average $0.08 on the dollar for my bonds. This was a bad move on my part. Don't look at it as a few cents off here. A few cents off on junk bonds is like a few cents off in forex trading. Minor difference, major impact.

So, essentially, penny stocks, junk bonds, and forex are all similar in principle in terms of the money management formula.

I think there's more money to be recovered with Finlay and pray that all other bondholders will exercise their voting rights to vote against settling for much less than these bonds are actually worth. We should aim for an above average recovery here. Gold prices have skyrocketed since Finlay first manufactured/purchased their jewellery. At today's prices, that inventory is worth much more than it was originally valued at.

Yesterday:

-0.82% on the SBA
-1.41% on the Roth IRA

Today:

+1.81% on the SBA
+0.85% on the Roth IRA

The performance of my SBA is decidedly much better than my Roth IRA over this recent market meltdown. On the way up, the Roth IRA was doing much better. C is a major part of my Roth IRA, although it's also in my SBA. But I've got a lot of stuff in my Roth IRA that just doesn't move - such as BULIF.

The major difference seems to be HWD. Oh, Harry, my Market Hero / Financial Angel / Alpha Sultan of Gemstones. He isn't quite saying "bank me" just yet, but I think his glasses appear to be dark rimmed.


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