iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,460 Blog Posts

I’m No Guru

When I sold VHC I did it because I was done relying on the caprices of judge and jury. I had a moment to think about what I was doing and decided it was time to liquidate my entire position. I started to sell in late February and completed my final sale on 3/5. At its peak, VHC comprised 30% of my assets.
VHC

But keep in mind, I’m not a guru, just a space alien magician (SAM) trying to make his way–here on Earth. The gurus are guys like Bill Ackman, long JCP into the teeth of catastrophe. Bill’s other “big bets” include risky stocks like PG and TGT, a real genius that guy is.

I don’t know what will happen to VHC tomorrow or the next day. For those of you who are still long, I am pouring out some of my 40 ounce of malted liquor onto my persian rug, right now, in your honor.

This too shall pass and you will learn from this experience to never trust a sure thing ever again. I am guilty of being swayed into the trap of euphoria too. At one point I felt this stock was on a bee line to $100. But the way the stock traded, spoke volumes, much more than the news itself. It was frustrating to own it and most of the time it traded by appointment.

Perhaps this is a blessing in disguise. Maybe this is a buying opportunity of a lifetime. I am sure James Cramer will give it another “boo-ya” on CNBC this evening.

The important takeaway from all this is asset allocation. If this was just a 5 or 10% position, it would hurt, but not be catastrophic.

Regards,

Lord Fly, Commander of the Stock Exchange, King of Kings, President of Atlantis.

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30 comments

  1. STAugustine

    The Fly on CNBC — awesome

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  2. Bored

    What happened to this site?

    There used to be lots of comments about Fly’s posts, now, hardly any.

    I remember when…

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  3. jj

    prior to selling today, what % were youyou down to with VHC ? what is your year to date return at this point ?

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    • The Fly

      I didn’t sell any today. I sold it all on 3/5, as you can see from the picture above.

      I also mentioned it here on the free site several times.

      I am +21% YTD

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    • KDog

      He sold it days if not weeks ago, friendo.

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  4. Green Machine

    Sadly, I am still in on this one and wanted to ask you a while back about your reasoning for selling.
    Tragically, I thought about trimming my position this morning – I had a sell order in and decided to let it ride until the afternoon. I can no longer operate my U.S. account. I will stick it in grandfather stocks (no homo) and be done with my degenerate gambling.

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  5. Herd Mentality

    You should go on Mad Money under one of those shadow faces and altered voices. I haven’t watched Cramer in 2 years and have done so much better.

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  6. Mr. Partridge

    Your Japan stocks was pretty Guru though…
    I said before and I say again I have always made money on Bill’s picks..I am no genious though, still hoding TGT PG and CP..
    VHC is nominated as your best trade of the year… timing was amazing

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  7. J Livermore

    Ack Attack !!!!

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  8. UglyFlint

    King Le Fly. Hung like a monster !

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  9. flyaway18

    I sold VHC when you did. It was a lotto play of no significance. I always remember what Dan Fitzpatrick said about trading, keep emotions out of it, period. Cut your losers. I wonder if stosp would have helped those peeps who got caught in this stock today. If not using stops, then just buy small!

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  10. TaoOfPatrick

    I kept mine, 29.75 avg pps…..The horror….the horror.

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  11. The Devil

    It would be prudent to avoid your favorite urinal nowadays……Nosferatu lurks in the shadows there….is CALL going to …..pull a VHC here?

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    • The Fly

      CALL dropped due to VHC. It’s a ridiculous connection that I am making right here, right now.

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  12. Mr. Partridge

    DDD getting creamed 3d style… watching

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  13. bobbin4apples

    I was in vhc but I bought a 17 hand 3 yr old race horse today on a whim and I feel fine.

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  14. The Eye-Talian Stallion
    The Eye-Talian Stallion

    Gamblers: In one hand and out the other.

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  15. figesmalls

    Thanks for the notes. My deepest sympathies on your pipes. Still think the fundamentals of VHC are solid – CSCO loss was a VERY small variable in the formula. See the white paper. The loss stings, but it’s the 4G technology that is a critical component and if this plays out, I would not be surprised if you jump back in. I am certain you are watching this stock.

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    • The Fly

      I don’t doubt the long term story. But don’t be so anxious about jumping into fires.

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  16. figesmalls

    And yes, you ARE a guru. Deal with it.

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  17. Berserker

    Always want to be able to hedge, and there never was an opportunity to hedge VHC… having said that… I’m short 280 contracts on a position right now and hedging and liquidity shouldn’t be a problem, but it is. Time to reconsider market direction/depth indeud.

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