Stocks I Bought Recently

I mentioned early this month that I bought 600 shares of Citigroup (C) on the day when the stock was traded below $1 for the first time ever. From where the stock is traded now (it closed at $3.08/share on March 18, 2009), it seems that my bet is a good one, even though I didn’t get my shares at the lowest price. And C isn’t the only stock I bought recently. In fact, I see the recent sharp decline of stocks as an opportunity to buy. Since February, I have added $4,000 new money into my Scottrade account and used to money to buy more stocks.

In addition to Citi, I also snapped up 222 shares of Bank of America (BAC) last month when the stock was hammered by fears of nationalization. When Sirius XM Radio (SIRI) was rumored to seek bankruptcy protection in February, I bought 340 share with the $35 cash left in my Scottrade account. Other recent purchases are:

Stock Shares
Bank of America (BAC) 222 $4.50 02/27/09 $7.67
Citigroup (C) 600 $1.05 03/05/09 $3.08
Sirius XM Radio (SIRI) 340 $0.1065 02/13/09 $0.3748
Research in Motion (RIMM) 15 $38.60 03/05/09 $40.98 (SINA) 45 $21.65 03/12/09 $20.74
Las Vegas Sands (LVS) 317 $3.90 02/03/09 $2.33
Global Sources (GSOL) 404 $5.49 12/31/08 $4.34
WuXi PharmaTech (WX) 300 $4.42 03/05/09 $4.53
Qiao Xing Mobile Comm (QXM) 620 $2.81 12/12/08 $2.06

All these purchases were made with free trades I earned from Scottrade (I probably don’t need Zecco’s free trades any more). While it’s nice to trade without paying commission, Scottrade does have some restrictions that makes trading a little difficult. I usually don’t keep any cash in my account. When I saw something I want to buy, I deposit the money into my account in the early morning. The problem is, according to Scottrade’s rule, the money can’t be used to buy stocks under $4 right away and as we know, many decent stocks are traded below that level now. To buy stocks below $4/share, the fund, transferred via ACH, has to be cleared and that takes full three business days (no such restriction if the money is wired to the account though). Given how volatile the stock market has been lately, anything can happen in four days. I asked Scottrade for reason and one explanation I heard, but don’t think it makes any sense, is stocks below $4 are not considered as stable. And this isn’t the only restriction. Once I was trying to use unsettled fund to buy Kongzhong (KONG), but my order was rejected even though the stock was traded around $5.00. I called in and was told I can’t place internet trade order on some thinly traded stocks with unsettled fund. Those stocks can only be bought through the broker. Since there isn’t a list of stock with extreme low trading volumes, there’s no way to know in advance what order has be made through a broker.

All these policies are to protect the broker. While there’s nothing wrong with that, it does cause confusion and inconvenience.

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9 Responses to “Stocks I Bought Recently”

  1. Tim |  Mar 19, 2009 at 7:55 pm

    i bought 3k shares citi at $1. it was over triple, now is mid $2′s. i’m fine with it. citi will continue to appreciate as this crap gets waded out. i will be long on citi, b/c it will prove very profitable however long it takes to recover. if not, it is still worth at least the dilute price of $3.60, which is still 3x what i paid

  2. Writer's Coin |  Mar 20, 2009 at 6:14 am

    Very ballsy buys there, especially those two banks. I own some BofA but I need it to get way back up for me to break even. I would be very tempted to pull out of Citi right now.

  3. Tim |  Mar 20, 2009 at 10:19 am

    I don’t think it was ballsy at all. you have a 50/50 chance it would be nationalized (still 50/50 chance) and at $1/share with an upside of at least $3.60, I’ll take those odds any day. I think the odds are even greater that citi won’t be nationalized (although i believe it already is considering the govt has 60% stake in it already, but that’s just semantics) out right. it doesn’t mean we won’t see more gyrations. anyways, i have lots of financials, because when all is said in done, we will continue to have a banking system, and there will always be wiz kids creating new ways to make money.

  4. Sun |  Mar 20, 2009 at 4:00 pm

    I am with Tim on banking stocks. The financials may not be in the real recovery mood any time soon if they still have billions of bad assets on their books, but that should have already priced in their stocks when they hit $1 or $3 early on. I happen to believe that the worst is over for the big banks and the reason that stocks got punished so bad was because of the panic selling we saw a couple of weeks ago. These stocks will continue to be volatile, but I feel they have more room to go up than coming down. So I am just going to keep my shares and see what happens a quarter or six months from now. I may add more if the opportunity comes.

  5. Tim |  Mar 20, 2009 at 5:48 pm

    i’ll buy more citi under $2. waiting for ge to hit again at $9. i’m not going to worry about them. i’m looking beyond a quarter or 6 months from now. this econ stagnation isn’t going to resolve itself for another year.

  6. Andres |  Aug 01, 2009 at 1:47 pm

    I know it isn’t 6 months yet but these picks are looking brilliant on your part!

    I myself bought some LVS, WYN and WYNN around the same time you did. I think I’m doing ok with those ;)

    But I will never forgive myself for not getting BAC under 5 or GE below 10, congrats on some awesome picks!