Saturday, August 11, 2012

Taking a loss on ADM - and Moving on!

It seems like the weather has taken a toll on many of the agribusiness stocks, including ADM, which I had a position in.  It took quite the tumble and I don’t expect it will come back for some time.  So I bailed.

It’s the second position I’ve decided to prune under the Rescue My IRA account approach.  The other was ACM…the symbol shares so much in common maybe it shouldn’t be a surprise that they performed so similarly!

Here’s the history:

ACM – 300 Shares, basis $30.82, cost $9,246.88
Option Premiums (total):  $597.97
Dividends Collected:  $52.50
Stock Loss:  -$1,724.05
Total:  -$1,073.58

Of course, the absolute return and the annualized return are negative.  I won’t even bother to report them.  I am just lucky that so much of the capital loss was offset by the premiums and dividend – and that the market has the value of the account up for the year despite taking the loss.

I have rolled these funds into a new CAT position.  I’ll follow up with a post on that soon.

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