Paul Meyer Buys Houses

Posts tagged “Hoku Scientific

How to deal with your stock portfolio losing value

Interesting subject because learning how to deal with your stock portfolio losing value can be a very important experience and tool for success. I’ve read plenty of money management books, but when it comes to losses it seems the only thing you can do is take a step back, observe, and react to the current situation. What stocks do you own? Are they in industries that are losing gobbs of money and going bankrupt (currently financials and auto). Consider using the warren buffett method or buy staple stocks such as an industry like utilities such as General Electric (GE). At least until we get better energy we will always need electric companies, gas companies, oil, natural gas, and soon hydrogen power such as Ballard Power (BLDP) or HOKU solar (HOKU).

As for emotional pain I say buy a big delicious pizza and treat yourself just because you are investing. Now don’t get fat and eat notoriously with the more negative gains you receive, but know just like a good treat bad things do finally come to an end and you will reap rewards by being patient. I suggest even punching a boxing bag because #1 all the energy you’ll be letting out will make you dizzy and forget about your financial problems #2 it helps you feel better and stay in fit and #3 it will make the meal you can still afford more delicious.

Financial strategies you can think of if you want to switch some of your money during a down market at least I would do woudl be tax liens, buying a rental properties, and shorting stocks or buying up put options on your stocks that are falling then sell off the options once the market changes its mood.

Learning how to deal with your emotions, appetite, and financial strategies should make you feel all around more confident about yourself and your future. Positive thoughts. Yeah…! At least it does for me losing tons of money on a portfolio or option position I need to immediately rethink my strategy. I’ve had to do this numerous times on business ventures I got into and even relationships.

Trailer parks, stocks (HOKU scientific), and assasinations

Pakistani President being assassinated with riots afterwards. I’m not so surprised. Do even Americans care? Do we? Is it just another scare tactic? Another cover-ups for something else? I don’t know who to trust these days, particular not the news. It definitely made a hit on our financial markets with our major averages down -1% today.

The only stock holding up in the positive was Apple Inc (AAPL @ $202). Impressive. Its new blockbuster deal with Fox to sell more selection of movies on its iTunes is really going to boost the stock price up into the Mac Expo Jan 14th then earnings I believe Jan 18th. My price target I think it will hit is at least $220. Up another 10%. I think we could see $300 or a big stock split by next year.

Another wild stock is HOKU Scientific (HOKU @ $11.81). Currently down around -7%, but it had a major run up of +20% so I’d expect some pull back. It made another BIG white candle showing there is major support and it is ready to move higher then $15 in my opinion and what I see on the charts. If it holds above $11.50 today I think we will see it hitting $15 first week of January 2008 and I will be sold out of my Jan 15 Call options up around +200% or more. I’ve been trading HOKU since around $9 then to $12 sold, then bought at $10.58 and waiting for it to move higher with my options to sell at a good price.

Trailer park news is in. The previous owner who sold it to me first offered me $3000 to buy it back. I Negotiated $7000 then we met at $5000. So I did it. Okay it didn’t work out. I probably lost around $15000 on the deal. What’s new? Well nothing new besides no girlfriends, no luxuries, no nice bachelor pad, or paid off debt to pursue my business ventures until I get one that sticks and works well. Some people might feel irritated or mad about this, I just gulp it down, and thank God already for when something really does happen for since I know it will. Just when? I’ve been reading the Bible lately. I don’t know if this has affected the owner actually offering me money to buy it back or not. In a weird way I feel I lucked out not just offering it back to him to get rid of the ongoing loss. This is the way I look at this: I’ve owned the park for around 6 months and made a total of $1500, lost a total of around $22000 (this includes initial down payment of $10,000 + $4200 worth of mortgage payments + $7000 worth of repairs and renovations). I’m only getting +$5000 back, but if I hold onto it for another 6 months with the little tenants I have an keep incurring bills I will actually lose another $6-7000. So in retrospective if I sell it back to him now and accept +$5000 I’d actually be gaining really +$12000 back. I look at this as a losing stock. I can either cut my losses now while I can see the picture and its not earning me any money and continually since I’m not there I have no control over getting the units rented or I can keep it and continually lose more and more money that I could of applied to pay off existing debt. I think my biggest problem here was that they were small trailers instead of single or double wides. About 1 month after I bought the park it hit me hard. Then again, with my risky investment ideas, I take full responsibility for buying the park without seeing it, without inspecting the trailers, and over valuating it. I guess I learned another hard lesson in my seventh year of continual business losses.

So now that the park is done for and I can move on with my life I plan to take any money I have left and apply to my car loan and pay it off first. Student loans second, and then put the rest in a savings account. If I do buy another piece of real estate it will strictly be a single family home or duplex. I found that even though buying a mobile home park can be very profit worthy, unless I am there to maintain it, advertise it, and do most of the repairs it will become more of a burden then improvement in my business ventures. I suppose I learn best by doing. Most people teach or talk about doing something their entire life, but never do it. I actually do it. So I guess I can expect more hardships and wise lessons.