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Random thoughts about stocks

April 21st, 2008 at 04:52 pm

I never really made any money in the stock market. Yes, I have bought some stocks here and there, but return wasn't too good. Maybe I'm too impatient. So, I gave it up for a while.

Well, after I missed opportunities for Coach (I bought a $250 purse instead buying their stock), Apple (I bought an iPod for DD instead of buying their stock), Starbucks (my husband goes there EVERY day and I didn't buy their stock), and Amazon (I sold my books for $5 a piece instead of buying their stock), I thought about buying Aeropostale.

I didn't even know the company until I saw my class-mate browsing their website. I asked her "American Eagle?" She said "No, it's called Aeropostale, and they are much cheaper." Hmmmmm.....

I started buying their stock through Sharebuilder last September after:
1. Getting tired of paying $100 for a shirt and a pair of jeans at American Eagle for my DD.
2. I felt economy is getting worse and people are looking for cheaper alternative
3. My DD asked me for Aeropostale's gift card for one of her holiday gift. She says she can buy "more" at Aeropostale than American Eagle.
4. I saw a Japanese actress wearing Aeropostale T-shirt. There's no Aeropostale store in Japan, that mean people are buying them when they visit U.S. Eventually, Aeropostale may open stores in Japan, like Gap and Coach did. Means, business expansion possibility.
5. I went to the store myself, and liked how they narrowed the lines of clothing they sell. I thought they are very focused and manage inventory well.

So far, first time in my life, my stocks are doing well. When I started buying them, the price was $23 per share, and it was $30 per share today. I'm only investing $100 a month since September, so my investment total is $800, and the balance as of today is showing $967.98. My goal was to save $1,000 in this account, so I'm almost there.

Now, the question is when to sell. I really don't want to sell until my gain is considered as capital gain. So, I need to hold them more than one year which I don't mind at all. I just hope the price won't drop before I sell them. Buying is easy, but selling is so much harder.

Anyway, that was my random thoughts of the day.



5 Responses to “Random thoughts about stocks”

  1. Petunia Says:

    Enjoyed your thoughts. . . that is probably the way I'd invest. . . if I did anything besides buy shares in mutual funds.

    My (teenaged) niece and nephew like to shop at Aeropostale. Smile

  2. monkeymama Says:

    I remember one of the millionaire shows on CSNBC? One of the guys said "Buy what you know." I remember in particular he said buy coach stock instead of coach purses. Of course he also said to buy on sale. I wish I remembered the guy's name, you would probably like his advice or book. Just reminded me of it.

    Oh yeah - guy was Phil Town. Book was "Rule #1." I think his rule was "buy on sale." But he was making a point to buy what you know - and was relating it to the audience - much as your post read.

    Just reminded me...

  3. Broken Arrow Says:

    Thank you for sharing! It's very interesting considering that I too am stock picking....

    I really don't know apparel retailers... so, I don't look there for investment buys. I did look up ARO though (the ticker for Aeropostale). I can't tell you much just briefly looking through the basic stats.... The stock is currently fairly stable... but not really on sale either as far as I can tell either.

    I would also take into account the whole industry in general, and the lingering effects of a down market? Apparel retailers are often said to be recession-resistant... because teenagers supposedly don't care about recessions and down markets. So long as they have money, they'll spend it on fashion. But lately, that's starting to prove false. Even teenagers work with limited funds that comes from either an allowance or a part-time job. In which case, a down market can eventually trickle down to them as well. In other words, the apparel industry COULD (but I'm not sure) be heading down right now.

    But please take my above comments with a grain of salt. I'm no expert and they are worth exactly what you paid for them. Big Grin

  4. Maismom Says:

    BA,
    I can not tell if the stock is overpriced or not. I was checking the price of Amazon when it was about $30 per share. I didn't think it was that cheap. But when I checked the price after a couple of years, it was up to $80!! It was my shoul've, could've would've moment.

  5. Broken Arrow Says:

    Hehe, well, I have plenty of those moments too.... Frown

    However, I do like your anecdotes, which could suggest something far bigger in the future.

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