Thursday, October 29, 2009

Lorillard 3Q Profit Surprise

This week, 3% return strategy is being tested at My Stock Lab. Lorillard (LO) looked like a good pick today after doing some online research over the weekend. I decided to wait for earnings report and buy it after good earnings report and sell after 3% jump. Wow, Lorilland's earnings was a surprise to downsize. However, I think stock got penalized too much, so I ended up buying on weakness.

3% Return Strategy:
- Buy a stock at weakness or strength
- Sell after 3% price increase, or 6% price drop

26 October 2009 Transactions:
- BOUGHT 40 SHARES OF LO AT $75.40
- Commission $7

26 October 2009 Positions:
40 SHARES OF LO

Account Balance:
Starting Account: $10,000
Current Account Value: $9946
Net Loss: ($54)

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