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A Tiny Disaster

newsale_growthportfolioMy investment in Mellanox Technologies (MLNX) has been a disaster. Although this was only a tiny investment the investment has lost more than half its value.

MLNX warned last week — this warning sent the stock from $60 to $50. But that same day the stock spiked to $53 giving us hope. Today the stock dipped below $50 to $48 and its time to rid the position from client portfolios.

MLNX was a high risk/reward investment that gave us more risk than reward.  The stock could have been something special and my feeling was if that were to happen that I didn’t want us completely left behind. It could have soared like Qualcomm (QCOM) back-in-the-day. Thus I took a two-step process to get in — half at $112 and the other half after the stock settled down. My investment in the Growth Portfolio was only 2% of each portfolio’s value. After sticking my toe in, the stock never got comfortable enough for me to make the second purchase.

This loss will likely impact portfolios around negative one percent. On paper, the percentage loss is worse than the actual loss.

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