MSB - or "when do you forget about the divy and cash in the capital gain?"

Discussion in 'Stocks' started by my7tvette, Dec 2, 2010.

  1. Maybe this is more of a rhetorical question, but if you buy a stock mainly to collect the dividend and then hopefully make an extra bump on capital appreciation, when you do you decide to move back into cash (or try to find some other opportunity)?

    I bought a couple hundred shares of MSB in the $10's back in the darker days of the market, thinking I'd collect some distributions for awhile and then cash out if it goes on a run. Well it has run up to $48 and I have mixed feelings about dumping it. Actually I already sold half in the low thirties if I remember correctly.

    I should be pretty happy in either case. If I sell the rest I've made some good $$ but of course there is the opportunity cost if it continues higher. If I keep it and the price fall through the floor, I've still made $$ since I had sold half for more than double the purchase price. The shares were purchased in a traditional IRA account so I won't have a taxable consequence if I do cash out.

    If I do move into cash, I'll be making basically 0% on the money thereafter. I'm not necessarily looking for advice, just comparing notes to see if I'm the only one who gets nervous when they have made more than they anticipated, sooner than they had anticipated in a trade.

    BTW, I'm not bragging about this. I'm still sitting on a couple of losers that I bought too early before the market completed its selloff a couple of years ago (GE and NTRI).