February 25, 2008

CHC Helicopter Position Added

Today I added CHC helicopter to my portfolio at $30.42. I could not get at lower prices as quantities were disappearing fast and I had to enter my order at market rather than my preferred way of limit order.

The higher price will lower my annualized returns but it is still above the 20% threshold expected return that i need for this strategy. My maximum price that I would have paid for CHC to earn a satisfactory return was $20.5, so i go a bit under that which was good.

I will be adding a tight stop loss order as CHC should not drop significantly from the buyout price. If the price drops significantly it means there is a problem in the deal and I want out of the position with minimal losses.

I will keep you posted on the progress.

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