 |
|
Former Short Position - HONInitial Cover-Stop was established off the hilltop resistance points which were above the 30wk moving average (Risk Corridor = 25.9%). The next valley-bottom occurred at 10/4/02 as confirmed upon the third subsequent increase in closing price on 10/25/02. The next hilltop occurred on 11/29/02 as confirmed upon third subsequent decrease in closing price on 12/20/02. Since the 11/29 hilltop was below the 30wk moving average, we adjusted the Cover-Stop to the 30wk level at $29. From that point forward, Cover-Stops are adjusted downward in $1 increments in tandem with the 30wk. 5/4/03: An excellent example of how the periodic maintenance of adjusting the Cover-Stop pays huge dividends, locking-in profits. This transaction provides a 34.7% ROI (chi-ching!!!) (Note to Uncle Hank in London -- "chi-ching" is a cash register sound-effect). Half of our position is still alive. 5/11/03: Strike two. 34.6% ROI on this transaction. 34.7% ROI cumulative so far with this issue. 25% of our original position is still alive. 5/18/03: Strike three -- You're Out!!! But we don't take that as a negative. We pulled a 30.8% ROI on this third exit transaction. After accounting for dividends (which actually count against us on a Short position), we yielded a 32.1% ROI overall. Again, Cover-Stops lock-in profits. Overall, a 43.1% Annualized Rate of Return.
|
| |||||||
