****tfolio of PAF as of 11MAR08
T 10,530
VZ 1,010
Q 3,500
SGP 12,570
total share-wealth-units last re****ted which was 3MAR08 was 36,796
total share-wealth-units today 36,816** (** where Q shares count as
1/3 share-wealth-units and where T and VZ shares count as 2X a unit)
realestate land 3APR03 of 3 lots $19,000.
realestate land 30JUL03 another lot $11,500.
realestate land Sept05 another lot $75,000.
Alright, today is a day what I can call a "Classical Optimal Strategy
day".
Because for the majority of the history of VZ versus T for the past
years
has been a spread of about $5 higher for VZ, but today, T was about 70
cents
higher than VZ. So dutifully following the Optimal Strategy, I sold
1000 T at 35.20 and with the proceeds bought 1010 VZ at 34.50 and
having some remaining cash also. So today, I gain in 10 free shares
of VZ with some cash extras. All of which was before taxes, however,
since this is a down market, I sold the T at a loss, so those 10
shares
of VZ are truly free, at least for now, anyway.
Now one of the troubles in the Optimal Strategy of the past was the
idea of switching too early. Why switch with a mere spread of 70
cents.
Well I like to wait until the spread is at least 2 or 3 or 5 dollars,
but
considering how rare it is to find T priced higher than VZ, I decided
that perhaps today was a mere fluke or oddity or rarity, so may
as well benefit some than to benefit none at all. If today was a
fluke then soon in the future, VZ will be back to a 4 or 5 dollar
higher
spread over T and then to sell 1000 VZ and buy back 1110 T.
Sometimes it is better to take a little, rather than stay put on
nothing.
Also, some may question why the rush to buy Qwest, recently
at 5.35 when today it is priced at 4.92. And here I would answer
that Qwest is in a position to merge with either VZ or T and if it
does so, it will spring forth in price to where the days of quibbling
over Qwest at 4.92 or 5.35 were merely silly quibbles.
Noone is going to be perfect in making switches or timing, so as
long as one plays the Optimal Strategy to where it is a constant and
steady increase in share wealth units is really the bulk of the game.
Once one knows how to steadily keep increasing wealth, then
the ironing out of the loose ends is easily tackled and improved.
So, yes, I would have done far greater if T had a spread of 3 or
5 dollars to switch some into VZ, but I do not know if that will
come true in the next weeks and months, so I suspect I did
the best choice and get at least some benefit.
Archimedes Plutonium
www.iw.net/~a_plutonium
whole entire Universe is just one big atom
where dots of the electron-dot-cloud are galaxies
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