Wednesday, March 08, 2006

GO New York Stock Exchange (NYX)!!! Stock Cheerleading With a Couple Insightful Comments about NYX

I'm so excited that my position in Archipelago (AX) has been so profitable recently, especially today. I made two purchases in mid to late November with a net cost of $57.11/share (stock closed at $80 today). The conversion of AX to NYX caused the shares to spike 24% today. That 24% spike tells me: 1) A hybrid stock exchange is only a speed bump in the path of complete conversion to a fully electronic stock exchange. Yes, the float (# shares trading) on this stock is small, but 24% today!!! I might just sell 33% of my NYX shares into strength here (by Friday) and take a little off the table.

I heard an interesting tidbit on NPR while coming in to school. The New York Stock Exchange could operate at 10% of its current operating cost if it converts to a fully electronic trading system. I sincerely hope none of my readers work on the floor of the stock exchange.

I will get around to detailing my stock portfolio with a nice picture, diagram or spreadsheet by Sunday night. Please remember, I said in my intro that I save aggressively and invest moderately. NYX has certainly offset the short term hit I’ve taken in my commodities position... I will likely include a discussion on the inverted yield and how it ties to some of my portfolio decisions (sounds exciting... HA, HA, sarcasm)

I'm not a rocket-scientist or anything with stock picks. I've been typically good with identifying companies with sound strategies. I have been poor with timing sales of shares. Cases in point: I was buying shares of Ameritrade in the high eights and low nines within last 22 months. I was also buying SanDisk and Garmin around this time frame. These were roughly 3 of 10 stocks I was buying... The other stocks didn't tank or anything, well, one did (EBAY)... I just cashed out about a month or so before their rallies to set up a savings account for house down payment.

Hopefully, talking though my investment decisions on here will help me better rationalize my choices. More to come later, .getting back to thesis on Perceived Financial Conditions…

1 comment:

Finance Junkie said...

Wow, Sharebuilder hasn't recharacterized my AX shares into NYX shares... They are so behind the times. They are so expensive with acct fees and real time trades.

I wouldn't recommend sharebuilder to even my enemy... Should be converting over eventually to regular discount broker in near future.

Joined sharebuilder as one of series of brokerage accounts b/c they had a promo for trades/cash back....

Again, they're not worth it.