IFO has been pretty opinionated – giving advice, criticism, lifestyle advice and even a bit of political commentary. At no time did she indicate that she might make investing mistakes. After all, she’d learned over years of practice, mistakes, and learning the ‘right’ way to invest as an individual.
She followed all of her own advice and is just now wiping that big glob of egg off of her face. We are going to confess fully – even naming names. Cabot Oil and Gas (NYSE:COG) looked like a good stock. WRONG.
We bought last Friday at $83. It is currently at $67.15. OUCH! Our only consolation is that the CEO is really mad about the drop. He thinks the analysts are out of their gourds. Our only other consolation is that this is the first stock buy we have made in months, thus, apparently avoiding even more losses.
“Cabot Oil & Gas Corp. Breaks Below 200-Day Moving Average – Bearish for COG,” Forbes says today. OTOH, another Forbes writer thinks you can do even better than a company insider who bought a bunch of shares a few months ago at a price higher than it was yesterday. “Get An Even Better Deal On COG Than Director Kelley Did”
It is in the oil and gas exploration sector, has a reasonable sounding and looking CEO, good earnings picture and good stock performance — until now. COG has announced plans to increase its dividend and do a 2 for 1 stock split in a couple of weeks.
Has the old “[Bad] Luck of the Irish” struck again?
So, now we face the excruciating decision: Sell? or Hold? So far we’re holding; we’ll let you know if we sell. It’s only fair.
Investment lesson: You’re never too smart to do something stupid.