Sold 100 Shares of Scholr Pharma Stock

I really only glance at my stock portfolio about once every other day, mostly to check that nothing has imploded. My desire to be a knowledgeable stock investor fizzled after reading books about index funds and how people much smarter than me can’t beat the market. But I still have my “play money” stock portfolio, which I started with $5,000 back in 2001. It’s now at about $5,690 (publicly tracked here), and I’m still beating the S&P 500 since its inception. Just call me a slightly lucky monkey throwing darts.

I noticed today that Scholr Pharmaceuticals (DDD), a stock I bought after minimal initial research, was finally above my buy price of $4.80 due to some buzz about a potential buyout. Since buying the stock, I did a bit more reading and am really not impressed with the company after all, so I took this opportunity and sold my 100 shares at $5.25.

My taxable brokerage account is at Ameritrade Izone, so it cost me a round-trip commission of $10. So $525 – $480 – $10 = $35 profit over 10 months (short-term capital gain). It works out to an annualized return of about 8.6% on my initial $485 outlay. Not too bad, it could have been much worse. Of course, now that I sell they’re probably going to announce a huge buyout offer within a week.

I hope this shows that this blog is all about a learning process and one guy sometimes often making questionable decisions, especially with this specifically-designated Play Money portfolio. I don’t profess to be anything else. I’ll share the good with the bad, and hopefully we’ll all come out smarter and richer in the end.

My obligatory disclaimer.

Comments

  1. 8.6% is better than -8.6%

    hmm. I use marketwatch’s virtual stock market to mess around with..

    course having 1 million to invest isnt really realistic *shrug*

  2. See, I knew it. They just announced a partnership with Wyeth. Now trading at 5.70. Shrug. They still have a long ways to go.

  3. lol why didnt u just wait then?

    ah well it’s all fine.

  4. ’cause if the rumors just turned out to be rumors, then the stock would’ve dropped – it’s very volatile. It closed at 5.56. I’m glad to be out. On to my next stock whim. The fact that there were even rumors made me wary of insider trading.

  5. Have you calculated what effect this sale will have on your income taxes? I’d be curious to see how much those gains will be stripped away by the gov’t…

  6. As of today it’s now trading at $2.63.

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