Tuesday, October 23, 2007

The journey started - Bought NTGR stocks

I bought 32 Netgear (NASDAQ:NTGR) stocks on 10/22/2007 for $30.2 each. Ameritrade charged my $10 for the transaction. So, I would consider the cost of each stock to be $30.51.

I want to keep track of the following information for every new stock that I buy:

1) Why am I buying this stock (Research that I did, factors that convinced me to buy that stock, why didn't I buy the stocks of a different company in the same market/domain?)

- Earnings per share (EPS) was 1.18
- The company's 52 week's high was about $41 and 52 week's low was about $21
- The stock reached around $26 in July 07 due to poor Q2 results.
- The company gave a good Q3 outlook
- The company is venturing into Storage area solutions, coming up with innovative products like Skype phone, digital entertainer HD (for homes). The company was named in Deloitte Technology fast 50 program.
- TheStreet.com has given a buy rating with a target price of $41.
- The company's performance is good since it went IPO.

2) When will I sell the stock?

I am planning to sell the stocks when the value reaches $40 or above.

I'll think about selling this stock if it continues to go down and goes below $20.

3) What am I going to do with the money that I get out of this stock?

I am going to donate 20% of the profit and save the remaining amount. I'll probably buy an iPhone (when I save a lot or when Jobs announces another price cut :))

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