Sean HymanKeymasterSeptember 30, 2020 at 6:34 PMPost count: 3810
I forgot who it was, but I believe there was a subscriber that didn’t exit LB when we did. Keep an eye on it, because it’s rallied hard again.
It’s gone “so far, so fast” that if you’re above breakeven, you might want to consider closing it out because its a mile away from its 50-week moving average and could potentially recoil downward quite a bit.
So why would I say that with the chart I have below? Because it could take another year or two (or more) for it to go through a major wave 2 correction and then back up into wave 3, far enough to exceed wave 1. With those same couple of years with that freed up capital, you could likely do better elsewhere.
Additionally, fundamentally: it’s forward P/E is still high and its debt is still high.
Attachments:You must be logged in to view attached files.Sean HymanKeymasterSeptember 30, 2020 at 6:36 PMPost count: 3810
4.6 million shares short were closed out (and those are closed out with buy orders), in the past 30 days. That helped to make it a short-covering rally in wave 1.Andrew GrahamParticipantOctober 1, 2020 at 8:41 AMPost count: 92
Thanks for remembering Sean, it was me and I think at least one other person! I just broke even at $32 with todays bump and sold…whew !! Still made some money considering the dividends along the way and a valuable lesson ! This was the last stock I failed to sell on your recommendation.Sean HymanKeymasterOctober 1, 2020 at 8:53 AMPost count: 3810
Awesome! Glad to hear you’re out.Perana73ParticipantOctober 1, 2020 at 8:59 AMPost count: 176
Unfortunately, I’m the other one that didn’t sell at the time. I’m still down $90 total. Should I still sell? I have such a wonderful gain on BBBY I could use it as an offset, although I still have DO and that loss is more than my gains in BBBY.Sean HymanKeymasterOctober 1, 2020 at 9:24 AMPost count: 3810
LB has soared from $8 to $32.50 in a fairly short period of time. So I can’t tell you for sure if you’ll regain your $90 or not. All you know for sure is what you have in hand now. Since you’re up so much on BBBY and did so well on it, if it were me, I’d consider closing out LB at that meager loss.Sean HymanKeymasterOctober 1, 2020 at 9:26 AMPost count: 3810
If your BBBY gains are coming anywhere close to covering your DO losses, and you’ve made money on so many other positions…overall, you should be doing well. There will, for sure, always be some losers. No one gets around those. Not even Warren Buffett himself.
Recently he sold off all of his airline stocks at losses and he’s down a lot on OXY, etc. Yet he does great overall. Same with us.Perana73ParticipantOctober 1, 2020 at 9:28 AMPost count: 176
Done! Thank you Sean. It was the only stock I held onto after you had a sell order; only to still capture the dividends that were to be 2 days later. I definitely learned my lesson!! I could have sold at a profit back then. The little bit of dividends did not cover my (although small) loss. I’m glad I learned the lesson!Sean HymanKeymasterOctober 1, 2020 at 9:33 AMPost count: 3810
Yeah, it’s always good to let the stock price/gain be the driver and not the dividend. Dividends are the icing on the cake, but certainly not the cake….as it concerns our LI holdings. Yet we’ve got 9 great/high dividend yielders.
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