Archimedes Plutonium wrote:
> ****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.
>
The above felt so good that I sold another 1000 T at 35.84 and with
the proceeds
bought another 1010 VZ at 34.97. Perhaps I may regret the haste with
only a
small spread, or, perhaps I may cherish the action in that it is rare
for VZ to
be lower than T. But this much I am sure of, in that I have a strategy
that tells
me what to do and steadily increase in wealth-units.
So much of stockmarket investing is unguided fear and greed, whereas
a
Optimal Strategy cuts through that emotional malarkey and acts as an
objective appraisal of the current situation.
Perhaps Verizon is below AT&T since it is smaller and cannot weather
a
recession as well. Perhaps it is lower because of VZ fiber optic
laying is
demanding. Perhaps there is a union negotiation awaiting? There are
dozens of reasons that VZ is lower than T at this moment, but because
the majority of time VZ is far above T is the better reason to act.
****tfolio of PAF later on in the day 11MAR08
T 9,530
VZ 2,020
Q 3,500
SGP 12,570
total share-wealth-units last re****ted which was 3MAR08 was 36,796
total share-wealth-units today 36,836** (** 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.
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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