An investment opportunity or dead weight for my portfolio?

August 30, 07 by Stealthy

Today Coldwater Creek shares fell $4.51 (-25.93%) to $12.88. About 3 months ago sold all of my shares that I held at $25.04. I’m VERY tempted to jump back in at this price of $12.88, which I believe is a market overreaction from the poor sales data that came out today. I know the sales is bad, but I don’t think it was worth a 25% one day decline. In three months when they report earnings again and they meet expectations (because they will be lowered too low after today) the price will go back up with everyone jumping back on the band wagon of Coldwater Creek. If I buy in and nothing happens over the next several months it’ll be just dead weight for my portfolio.

What do you think? Should I take the risk of investing all that is in my savings account on a “hunch” I have? Or do I let this opportunity pass me by and play it safe?

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4 responses for this post

  1. SavingDiva Says: 31.08.07 at 9:54 am

    Go with your gut! If you don’t feel like you need the money in your savings account, I would say it is worth it…but if you will need it…then I would just say let this one pass you by.

  2. Stealthy Says: 31.08.07 at 8:31 pm

    well…. early this morning I set a limit order to buy 75 shares at $13, but I got them for $12.88 which is better. Bad news is it dropped almost 3.5% by the end of the day. That’s ok though because I expect that it will go back up :D

    Thanks SavingDiva ;) I went with my gut and still confident about it.

  3. dong Says: 03.09.07 at 11:24 am

    I’m not really a proponent of investing with your gut (though I do it too often myself). This is not to say your purchase is a bad one, as much as doe it make sense in you overall investment plans. One thing I’ve done in the last year is to actually have a plan on what my overall outlook on the economy is, and then decide how much I want to be invested. It’s really helped me be disciplined. And discipline goes further than the gut….

  4. Stealthy Says: 03.09.07 at 1:24 pm

    Setting a plan and sticking to it is one BIG problem I have. I know I have the problem, but still can’t stick with a plan right now. I had planned to save my money and not invest anymore right now, but I had this investment keep ringing in my head the night before I made it. Not saying it was ringing that it was a good investment, but just how much it had dropped that day. Half of me says I’m glad I bought it and the other half says I should have saved it. What’s done is done and I really need to work on self discipline. :/

    Thanks for bringing up and reminding me about setting a plan and being disciplined. I need to be reminded so I can focus on it once again and hopefully stick to it.

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