TRADE #37 - Buy TALK 290s @ $10.36 in Roth IRA
I just purchased 290 shares of Talk (Talk America Holdings Inc.) in my Roth IRA account for $10.36 apiece, plus a commission of $14.95.
I first got to know TALK from Motley Fool Hidden Gems newsletter. This newsletter applies a value-oriented to dig out deeply valued small caps for audience. TALK was its debut pick back in July 2003.
I didn't pay much attention to TALK for a long time, because I don't know much about telecom and I didn't have much investable cash either (I was buying a house back in August). Recently TALK entered my screen because it led the daily loser ranklist among stocks in my watch list for two days. After testing $15 in September and October, it dropped to close to $10 recently.
I spent some time to read TALK's SEC filings and re-read the Hidden Gems newsletter. Here is a list of things I like:
1. Established and rapidly growing customer base
2. Positive cash flow; paying down debts
3. Attractive valuation (<10 times earnings and FCF)
Without doubt, it is highly risky to buy a stock just before it is about to release quarter earnings (yes, TALK will release its Q4 numbers after the market close today), but
My target price for TALK is $17 for now, and I will look into the earning release and refresh the goal if necessary.
(A side note: I can only purchase 290 shares due to the availability of funds in the Roth IRA account.)
As I mentioned several times in previous posts(here, here and here), I decided to sell my RJR positions acquired on March 18, 2003 (as Trade #24) this month to log a long-term capital gain. I just did that this morning by selling the 100 shares ... Read
Today I bought 6 contracts of QQQ Jan 06 $37 Put option (YMZMD) at $5.20/share plus a commission of $19.99. These options are set to expire on January 20, 2006. Read
I just completed my first transaction in the year of 2004. I bought 10 contracts of MSFT January 2005 $25 Put option at $1.35/share plus commission of $25.99. These options are set to expire on January 21, 2005. Read
CI sports an amazing 17% run today after it stampedes earnings estimate by reporting pro forma earnings of $1.45 vs consensus of $1.17 (earning release). With the climb, the stock has greatly surpassed my price target of $52. I decided to dispose all my positions ... Read
