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Sold Chevron, Intel and Nvidia yesterday, to cash in gains in such uncertain times. September 5, 2007

Posted by deminvest in Chevron (CVX), CVX, growth stock, INTC, Intel, investment, my free stock, nasdaq, Nasdaq stock, NVDA Nvidia, risky investments, Single stocks, stock I own, stocks, zecco.
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My “free shares strategy tells me to wait till a stock goes up 40%, then sell enough of it to get my invested money back. This time I went a little bit out of the strategy and got back my invested money on 3 stocks that were up 30% only:

Ticker Company Transaction date shares sold price
NVDA NVIDIA Corporation Sell Sep 4, 2007 19.00 51.85
INTC Intel Corporation Sell Sep 4, 2007 40.00 26.26
CVX Chevron Corporation Sell Sep 4, 2007 12.00 88.44

I went out of my strategy because I don’t like how Wall Street looks. What I really dislike, is the fact that markets rallied because investors saw bad economic data that could indicate that the Federal Reserve may reduce its benchmark federal funds rate when it meets in two weeks. I think it is stupid to buy on bad economic data hoping for interest rate cuts. The economy is much more important than interest rates. If the economy is good most companies will see their profits grow. Now analysts seem uncertain weather the Economy will be hurt by subprime defaults or not. I am uncertain too.

I had bought:

  • 15 CVX Chevron for  $68.22 each one year ago. Selling 12 now at 88.44 gives me all my invested money back and leaves me with 3 free CVX shares worth $270. A 27% gain in a year + a 3% dividend seems good for me. Why did I buy CVX last year?
  • 50 INTC Intel for $20.16 each on March 2006. Selling 40 now at 26.26, leaves me with 10 free Intel shares worth $260. How I decided to buy Intel.
  • 25 NVDA Nvidia shares at 39.30 on June 15 2007.  Selling 19 of them at 51.55 leaves me, with 6 free NVDA shares worth $310. A 30% gain in less than 3 months is very good.  I guess that it was a good (or lucky) decision to buy Nvidia.

I decided to play as safe as possible in this uncertain marked, while continuing at the same time to increase the number of free stocks I own according to my  “Free Stocks strategy”.

Comments»

1. Jon - September 11, 2007

Good decision… so what are you doing with your cash in the meantime? I see you bought some JNJ, but are you also thinking of bonds / CDs / money market?

2. deminvest - September 12, 2007

I try to keep $5000 on my bank account, because I carry zero credit card debt. All my card use is withdrawn at the end of the month from my bank account. There is no reason to invest and then pay high interests to a credit card issuer.

When I have cash exceeding $5000 (which I often don’t because I like to spend money 🙂 ), I put it on an ETF which I trade at 0 cost on zecco:

AGG, iShares Lehman Aggregate Bond Fund, which seeks investment results that correspond generally to the price and yield performance of the total United States investment-grade bond market.


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