Wednesday, March 17, 2010
One Dumb Woman
About a year ago, I was talking with a local *mom* whose life partner worked for Bank of America, and thus owns a substantial amount of company stock.
She was beyond despondent because her husband's shares were in the sewer. That genius Ken Lewis had successfully driven the stock into the ground. In fact, it was right near the bottom of $2.50 a share (down from a peak of $52 or so) when I had this conversation. Her eyes were literally tearing up, she was that upset.
A few months later, with the bear market bounce in full swing, the stock was back up around $15 if memory serves me. I saw her again and she was in much better spirits - almost downright giddy.
CaptiousNut - Why don't you sell the stock here?
DitzySpouse - The *insiders* say it's going to $20...
CaptiousNut - C'mon. It's going back to $5. They are bankrupt.
DitzySpouse - The *insiders* say it's going to $20.
I wasn't going to push the issue; just take notes and put into the *blog* file.
I saw this same woman last week and we enjoyed a little palaver.
I asked how work was going for her husband, a ghost who I've only seen ONCE in the 2.65 years we've been neighbors. "Fine," she said. And I reminded her about the conversation we had almost precisely one year ago.
DitzySpouse - Yeah, and now the stock's up to....like $35!
CaptiousNut - (laughing) Well, it's up but not quite that high.
DitzySpouse - It is! It's like $35.
CaptiousNut - (laughing) NO. It's closer to $16.
But I only whispered that last line as we said goodbye. Who was I to burst the bubble that is her head???
I think if you're bawling at $3 a share, you ought to be selling a little at $16.
AND, when that stock is back down to $5 and I see this airhead....I'm going to say, "It's really $25, don't worry about it!"