A few lessons in the madness of the stock market for me this morning.
I can't deny it -- the bitter side of me got a little bit bigger when I heard CanWest announce their plans to buy back their newspaper income trust for $9 a unit today.
I wrote earlier about my experiences with CanWest MediaWorks Income Fund.
I bought my units at the IPO price of $10, watched them sag below $8 and finally pulled the trigger and divested the lot at a little over $7.50 a unit -- only a few weeks before CanWest announced they were considering being gracious enough to buy back the assets for less than they sold them for.
Hopefully now I can pull the whole episode behind me, learn my lesson and move on.
After all, it could be worse. I could be a Royal Bank shareholder. Canada's largest bank posted quarterly earnings today, and despite the fact that profit was up, the stock got hammered. It's down nearly 3%.
Apparently 14% profit growth pales in comparison to TD's and BMO's numbers, posted earlier this week.
Talk about a tough act to follow. Some people are just really hard to please... :)
Friday, May 25, 2007
Damned if you do...
Subscribe to:
Post Comments (Atom)
3 comments:
It was certainly not a good day for Royal Bank, profit up...stock down 3%...what if they had reported a trading loss like BMO..would the stock have been down 6-8%?? I think...traders just needed an excuse to sell...the longer term holders will probably keep holding !
If you're into leveraged and/or option trading, the RBC fall is a great opportunity. By the end of the coming week it will likely be back to where it was.
RBC's fall was really a case of expectation and not inspection. RBC is fundamentally the best banking play in Canada and people should take this as a buying opportunity.
Post a Comment