Allow me to reintroduce myself...

So a full quarter later, I've made a 5% trade. It's a celebration, beaches. My last post was about a huge loss at the end of April and then stock screening to find the next nugget. So, I'll pick up there.

So, Superhero on the Shag (if you don't know, it's because you haven't gotten VIP access yet) gave me some pointers on stock screening. Basically, I screened for stocks that actually have performed well, fundamentally, but have recently been bashed in the market for what appears to be no real reason. I played around with some screens and came up with TSYS and figured I'd try it out.

On May 1, TSYS had just beat earnings, had almost no debt, a low PE, lots of patents, long term defense contracts, all kinds of good... and got bashed to the tune of about 7%. So I bought 100 shares at $9.21. I didn't go with the full $1700 just yet on this one (because, apparently, I like to pay transaction costs - you'll see.)

Of course, as soon as I bought the stock that had already dropped after positive news, it fell more... On May 4, I bought another 90 shares for $8.95. Happy Birthday to me. I bought stock in a good company, at what seemed to be a good price. Of course, the price kept falling, and even though I've learned the lesson, I refused to set a stop... which is a good thing, because I didn't want to get stopped out on a good company. Everything I've read about this company points to it being "undervalued." So I waited it out.

AND DOWN GOES FRAZIER... WHAT'S GOOD FOR THE GOOSE
I bet no one has ever put those to phrases together to make a sub-title. I've been the first at many things. As my son would say, "I'm firsty." He's just not stupid enough to try to be witty about it. He wants a drink. But I digress...

So, the price of TSYS keeps falling. However, unlike my play with the 3x FAIL, I feel pretty good about a rebound. So, I did what the real traders do.

(Commercial: Do you care about grammar? Are you questioning how I change tense from one sentence to the next? Do these symptoms last for the entirety of this, or any, internet post? If so, maybe you should ask your doctor about Calmdaphugdown (r) (1-Tetra-n-Chillax). Calmdaphugdown is a beta-stupid-oversensitive-nerve blocker that will help you not be such a tight ass all the time. Ask your doctor about Calmdaphugdown. Side affects include no longer caring about things that aren't as important as you once thought they were, not being annoying, and not actually thinking the President of the United States is an illegal alien...)

As I was saying before the break, I did what the big houses do. Yep, I bent the rules a bit. I figured, if this thing is going to fall 33% in 45 days or so, but is otherwise a good buy, I'll buy more and average my cost basis down. I threw in another grand and on June 11, I bought 140 shares at $6.95. Of course, the price fell again, almost immediately, to around $6.60

Let's pause to learn something... This guy (me) bought a stock in small quantities. He bought it three times, thus paying for three transactions in. Good thing we have the internets making transactions cheap. Three $7s is acceptable (less than 1% of total transaction). Three $19.95s would not be.

EARNINGS SEASON IS UPON US
Earnings and stimulus are a wonderful thing - for somebody. Maybe all of us, but something tells me not so much. Cash for clunkers... think about it. You drive an old car - probably paid off if it's only worth $4,500 (or less). However, you now have the incentive to go buy a NEW car and get $4,500 for the car you were driving. What a bargain! for the dealers who weren't selling cars. You just got more debt and an asset that depreciated 40% in one day. It's the American way. (Apparently, it's THE way now.. Go read Financial Jenga and learn from someone who is not just making things up as they go along... like I am.)

The rumors and rumblings around TSYS were that it would beat the analyst estimates and all of that good stuff. The price starts ticking upward again. I'm feeling good about my $8.26 cost basis. Then, the earnings call hits - and I don't really make a note of it, because I'm travelling for work or whatever. Apparently, though, the call wasn't very clear and it comes across that TSYS missed earnings, coming in at 19 cents a share. No price spike. I do some reading and find that TSYS is actually at 28 cents a share, so I hold on and wait for this 'correction' to be realized... (My charts still say 19 cents, but 28 cents is right.) I guess someone(s) realized it, because today, I sold TSYS for a whopping $8.70 (still below my original $9.21 purchase price, but above my basis... can I pick'em or what?). That's 5% with transaction costs and all of that. Some say it's going to $12. I think it's going back to $6. If it does, I'll probably buy again and wait for next quarter. But I'll do it in my "PA". Yeah, I'm ballin like that now.

So, what did we learn or reinforce:
1. Screen to find undervalued stocks.
2. Set your stops, or "know" that you're on the right side of the deal and be ready to be negative for a bit.
3. Average your basis... if you're right, but the market is wrong, buy more. You better be right.
4. It's not cheating if there's not a penalty. Ask Goldman Sachs... or Big Papi.
5. "Buy the rumor, sell the news." I'm starting to understand this more each day. I need cable in my office. (No, I need to work in my office. CNBC is not work.)

So, where do we stand? (we? yep, you're in this with me - kinda like cheerleaders..or fail leaders.)
Total deposits: $3,500
Total value: $2,870
Total return: -18%

That's better than my 401k did last year... of course, they S&P has returned 13% YTD. So far, I've spent $630 on learnin. I tell myself it's cheaper than going to one of those weekend classes... and more fun. (Notice I don't tell myself it's more productive.)

Now, go read the Financial Times.