As usual, the caveats.
Hello all. Unfortunately, I don't have time for a full post, but since I'm not using real money, I figure the only to keep myself honest is to make a record of my virtual trades as soon as they're made, so I will report the trade now and give a fuller explanation later.
This post is to report on two trades. First, Synacor (SYNC) continues to hover around $3.00 a share, well below the price I bought it at. As mentioned in my last post, I have been able to find no publicly available financial information about the company to justify this rather precipitous drop. At this point, of course, my first instinct is that I have made some kind of mistake: that everyone else knows something I don't and that I should get out before things get any worse. However, if I am trying to approach these stock trades rationally, this reaction makes very little sense. Fundamentally, I have acquired no new information about Synacor or its financial state; since my investing thesis in the original trade was that Syancor was undervalued at $3.52 a share, then rationally, I should conclude that it is even more undervalued at $3.00 a share. So, the most rational response to this price dip, in the absence of new information, is to purchase more SYNC, rather than sell what I have. So that is precisely what I have done. I (virtually) purchased 330 additional shares of SYNC at $3.00 a share, the closing price as of last night, bringing my total ownership up to 895 shares.
The other trade (which as I mentioned, I will explain in more depth later) was an investment in semiconductor chip manufacturer Volterra (VLTR). Volterra produces and sells specialized voltage regulators that deliver a consistent, reliable voltage to electronics like laptops, servers and so on. I purchased 125 shares of VLTR at 15.99 a share (last night's closing price).
That's all for now. A more in depth explanation of the Volterra trade will come soon, likely before their earnings announcement on Monday.
