It took 10 years, but eventually I got there. My 222 RHAT shares are 46.9% up! I just placed this interesting order on ETRADE 5 minutes ago:

Order Type: Sell
Shares: 156
Description: RED HAT INC COM (RHT)
Price & Term
Price Type: Trailing Stop
Your Price: $36.24
Term: Good For 60 Days
Estimated Commission: $19.99
Estimated total proceeds: $5,633.45
Since I spent $5,629.03  3 very interesting things will happen:
  1. I will make at least $5,633.45 selling my 156 shares now, which is more than the $5,629.03 I had spend to buy the 222 shares at $ $25.18 each ten years ago.
  2. I will keep 66 free RHAT shares thanks to my free stocks strategy
  3. since mine was a  Trailing Stop order, if RHAT continues to go up, Etrade will not sell it, untill it changes direction going $1 away from the top. As an example, if RHAT arrives to $101 than goes back down, ETRADE will sell it at $100.

11 responses to “Redhat up 47%. Time to make it a free stock”

  1. deminvest Avatar

    Red Hat è salita e poi ridiscesa.

    Grazie al Traing Stop Order, il mio ordine è stato eseguito a $ 38.07
    il 09/09/10.
    Ne ho vendute 156 incassando un totale di $ 5938.92
    10 anni prima ne avevo comprare 222 al prezzo di $25.18 ciascuna, spendendo in totale $5629.03.

    Così ho guadagnato 300 Dollari e 66 azioni RHAT gratuite

  2. babes Avatar
    babes

    hi deminvest!

    now i cannot understand your comments.please translate..lol. have u seen panjiva.com?

  3. deminvest Avatar

    Sorry Babes!!! I forgot this Blog is in English!

    Red Hat went up then down again.

    thanks to Traing Stop Order, my order was executed at $ 38.07 on 09/09/10.
    I sold 156 shares making $ 5938.92
    10 years ago I had bought 222 shares at $25.18 spending a total amount of $5629.03.

    That way I made 300 Dollars and 66 RHT shares.

  4. babes Avatar
    babes

    grazie deminvest.. and congratulations.. worth the wait then

    1. deminvest Avatar

      Definitely beating inflation on this one

  5. andrew Avatar
    andrew

    what happened to zecco? using etrade now?

    1. deminvest Avatar

      Andrew,

      last year I got angry at Zecco when they stopped giving zero commission trades (which is what gave them their ZEroCostCOmmissins name):

      Zecco: no more zero cost commission and NO MORE MY ONLINE TRADING SITE.

      Now I am much less angry at Zecco because Etrade charges $20 commissions, while Zecco only charges $4.5.

      Anyway ten years ago, when I bought my RHT stocks on Etrade, zecco.com did not exist. That is why my Red Hat shares were still on Etrade.

      I think I will keep both Etrade and Zecco. Always a good idea to split the risk.

  6. andrew Avatar
    andrew

    ok.. what are you buying these days?? I’m tempted for BP or RIG, just to put a bit risk on the portfolio hehe…

    1. deminvest Avatar

      Andrew,

      Many times I have have risked on troubled companies. I have the feeling I have lost the “troubled company” kind of risky bets more often than risky bets on high growth, high value risky companies. I did well buying FORD very low, which is now one of my free stocks, up 77%, but I had big losses on Blockbuster, Citygroup, BIDZ. On all those I did bet on the fact that they had gone too low.

      My big growers like BAIDU and Mercadolibre were risky in another way… they are up 860% and 500%.

      With a sick giant, you risk all your money, but your return is usually limited to recovery to levels before the illness. With high growth, high valuation risk, there is no upside limit to your return.

      Tomorrow is the last day In September. Either I play safe on a great company making great earnings and yielding 2.6% dividends like Microsoft, or I will make a risky bet on http://www.google.com/finance?q=NASDAQ:HMIN
      wich is a fast growing China hotel chain, with about 700 hotels, with more cash than debt, with health growth, which will benefit of the growing Chinese business community that has to travel. On HMIN, I am betting on growth, not on recovery.

      Growth is also a more even bet. To know how troubled a troubled company really is, you need to understand their overcomplicated, often deceiving balance sheets. To bet on growth you have to guess the timing, the global or economical trends. A more even field for us who don’t have insiders giving us information on the heath state of a sick giant.

      Ot I take risks on

  7. andrew Avatar
    andrew

    Ended up buying visa (V). Initially bought @ 65, but purchased more.

    1. deminvest Avatar

      VISA is a great company. I may consider as October’s stock. I was risk hungry, so I got the Chinese hotel company for September

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