I Dodged a Bullet Today

Remember me telling you all I had decided to not invest in Western Gas Partners, Limited (WES) and the reasons why (ie. little to no information available on company, IPO priced below original range, etc), well, I dodged the bullet on that one. It may have opened at $16.50/share and even closed at $16.50/share, but at it's low point for the day it was down to $16.18/share. That's way to downside volatile for me.

Anyway, I took a portion of the money I was going to invest in WES and put it in a one month certificate of deposit (CD) at First Palmetto Savings Bank. This is a regional bank in South Carolina, and yes, it is FDIC insured. I chose the one month CD because that is the length of time my money would have been locked into WES anyway, and when the CD matures, another stock investment is sure to come along, maybe even another IPO stock. If any of you are interested (and I don't think many of you will be, but what the hell), the CD is paying interest at the annual rate of 2.7%. So, a $2,000 investment for one month will return not only the principle but interest of $4.44. That may not seem like much, and truth be told, it isn't, but it is only for a month, and the interest earned will pay about half the commission on a future stock trade (buying a CD is one of the investments Charles Schwab does not charge commissions on).

I took another portion of the money I was going to invest in WES with and bought some shares in Royal Caribbean Cruise Lines (RCL). This is the cruise line that Atlantis Events, the gay vacations company, used for my cruise along the Mexican Riviera last year. The stock is currently trading near it's 52 week low, and in my analysis VERY undervalued. It pays a dividend of 1.9% and has huge upside potential, with a one year target price estimated at over $40/share (currently trades at $30.76/share). If any of you are thinking of investing, remember this company and it's stock is a LONG TERM investment. I plan on holding onto this one for at least a year and a day (I'm waxing poetic).

Well, that's it for now. I'm off to Chico, California tomorrow for Mitzi's Big Hair Ball. I'm taking my camera, so I'll try to have pictures for you all when I get back. In the meantime, if you want to know more about the Imperial Court of Chico, follow the link posted below. The emperor and empress this year are two of the sweetest people I've ever had the pleasure of knowing, and if they ever need me, all they ever have to say is when. http://www.chicoimperialcourt.com/