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
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.