Wednesday, August 5, 2009

Defying Gravity

Did you get your two free Jack in the Box tacos yesterday? That was nice of Jack. I headed over around 11:30 and picked up mine from a nearly empty location. They put two tacos into one wrapper; that's the first time I've ever seen them do that. Are they getting cheap or were they running low or what? At least they didn't put two tacos into one tortilla.

Back in February of 2008 I thought I made a decent stock pick when I bought shares of Dollar Thrifty Auto (DTG) for around $16.50 for my IRA account. Soon thereafter, as happens frequently to me, the stock began its descent. I kept waiting for it to turn around, but it didn't.

Finally it got so low that it wasn't even worth selling - better to just hang on and see if it would reverse direction. Well when November came around, forget it. DTG and almost everything else took a nosedive.

In March of this year it was going for as low as 60 cents!! Now at that point I figured for sure why sell it, the worst it can do is lose another 60 cents. So I held on. The thought did cross my mind to buy some more since it was so cheap but I thought no, this company seems like it's not going to improve any.

And as usual, I was wrong. Here's a chart of the stock's price since those down days back in March (click to enlarge):

Yesterday I finally sold it for $17.26 a share, making a small profit. Today (Tuesday) naturally after I sold it, it kept going up and in after-hours trading it went over $18. Now just think.. if you had purchased $1,000 of this stock back in March when it was 60 cents, you would have $30,000 today.

Oh, if only I had bought more at that point. But I tell myself if I had done that, I wouldn't have held on to the stock, I would have sold it a long time ago.

Today's YouTube features a song whose title matches the stock. Now that I've sold it maybe you should buy it because it will probably soar over $50 in a few months if past experience holds true, haha..

By the way - the guy in the left on the video used to be a janitor at my elementary school. Then the group hit it big and wouldn't you know, he quit his job. I'm really happy when things like that happen to people - what a great story!


Anonymous said...

I once received such poor service at dollar (no caps is correct) that you would have been proud of me Rickie. I made them send me two $25 gift vouchers. They said I had a reservation that they could not fill. Since I had paid in advance, we had a contract that they breached. The real problem was trying to get a vehicle at the airport from somewhere else and getting my money back. It too three months and a four way call between American Express, Expedia, Dollar and me. I figured I would not use them again and forgot about the vouchers. Earlier this year we did use them. On the day we returned the car someone left a dollar sized ding in the door. Sucks to be them.

Rickie Miyake said...

Well those two $25 vouchers are probably what helped send them into a nosedive down to 60 cents a share!