PALM Stocks, Help please!

Hi,

I am a college student (actually now finishing a Master in EE) and started
investing through Bank of America Account in February 2001 (as a sophomore
in college) with $5,000 available. All I bought was 100 Palm for $22 per
share and 80 ORCL for $23 per share since I believed in hi tech. That left
me with about $900 in the account as COLUMBIA CASH RESERVES DAILY.

I wasn't following closely my stocks at one point as they started losing
right away (March 2001), just thinking "let's forget about them for a while"
as I was otherwise tempted to sell them and lose money. I was told "never
sell stocks if you are losing unless you really need the money".

As I said, I had 100 stocks from PALM which crushed after 9/11 from
approximately $16 each to $1.50 each (they were already losing since I had
paid $22 per share). Well, next thing I know is that Palm was combining the
shares as 1 for 20. I ended up being left with 5 shares around $20 per
share.
Were they allowed to do that? Also my $900 CASH decreased even if I didn't
touch it to about $600. Why?

Now my 5 PALM are worth approximately $40 and my 80 ORCL about $13 per
share. But how could I ever make up for that PALM loss? They would have to
go up to some crazy price per share which is impossible. Now they are
splitting them again 2 for 1 so I'd end up having 10 of them. Should I buy
more? Should I sell ORCL as it's now 5 years since I bought them.

Thanks for all the help

Re: PALM Stocks, Help please!

"Berlusconi's #1 Fan" <ProdiSUCKS!!!@hotmail.com> wrote in message
news:bOjQf.70370$

> I wasn't following closely my stocks at one point as they started
> losing right away (March 2001), just thinking "let's forget about
> them for a while" as I was otherwise tempted to sell them and lose
> money. I was told "never sell stocks if you are losing unless you
> really need the money".
>
> As I said, I had 100 stocks from PALM which crushed after 9/11 from
> approximately $16 each to $1.50 each (they were already losing since
> I had paid $22 per share). Well, next thing I know is that Palm was
> combining the shares as 1 for 20. I ended up being left with 5 shares
> around $20 per share.

Many thousands of investors/speculators were left "holding the bag" in 2001,
especially in technology stocks. You just dealt with it much later.

> Were they allowed to do that?

Yes; it's called a "reverse split" and is sometimes used to keep the price
above the exchange minimums for listing on that exchange.

> Also my $900 CASH decreased even if I didn't touch it to about $600. Why?

You should examine your statements to see where the cash went, but I suspect
that the time that's elapsed will preclude any effective contest in the
matter should you find one justified.

> Now my 5 PALM are worth approximately $40 and my 80 ORCL about $13 per
> share. But how could I ever make up for that PALM loss?

Like many of those other thousands, you may just have to eat the loss. The
market can be merciless.

Re: PALM Stocks, Help please!

Berlusconi's #1 Fan wrote:

>Hi,
>
>I am a college student (actually now finishing a Master in EE) and started
>investing through Bank of America Account in February 2001 (as a sophomore
>in college) with $5,000 available. All I bought was 100 Palm for $22 per
>share and 80 ORCL for $23 per share since I believed in hi tech. That left
>me with about $900 in the account as COLUMBIA CASH RESERVES DAILY.
>
>I wasn't following closely my stocks at one point as they started losing
>right away (March 2001), just thinking "let's forget about them for a while"
>as I was otherwise tempted to sell them and lose money. I was told "never
>sell stocks if you are losing unless you really need the money".
>
>As I said, I had 100 stocks from PALM which crushed after 9/11 from
>approximately $16 each to $1.50 each (they were already losing since I had
>paid $22 per share). Well, next thing I know is that Palm was combining the
>shares as 1 for 20. I ended up being left with 5 shares around $20 per
>share.
>Were they allowed to do that? Also my $900 CASH decreased even if I didn't
>touch it to about $600. Why?
>
>Now my 5 PALM are worth approximately $40 and my 80 ORCL about $13 per
>share. But how could I ever make up for that PALM loss? They would have to
>go up to some crazy price per share which is impossible. Now they are
>splitting them again 2 for 1 so I'd end up having 10 of them. Should I buy
>more? Should I sell ORCL as it's now 5 years since I bought them.
>
>Thanks for all the help
>
>
>
They should have been sending you statements, monthly or quarterly,
which would show you what was happening. If they were charging you
fee's it would have been on the statements. If you are not willing to
take the time to follow your investments them I would suggest that you
get out of investing, if you want to keep investing then transfer your
account to an online broker so you have ready access to your accounts.
Don S

Re: PALM Stocks, Help please!

Not to be cruel, but would you hire a CPA to design the next
engineering project? Or should a CPA firm hire an EE as an
accountant? What did / do you know about Palm the company?

With only a one trick pony ( Palm or a single company investment ) you
violated rule 1 ... never all the eggs in one (or 2) baskets. You
could have simply invested in one of the index funds. MDY is my
ideal.

You must be very well off as I know few at your life stage of life
with 5K burning holes in their pockets.

arthur
==

On Fri, 10 Mar 2006 18:44:23 GMT, "Berlusconi's #1 Fan"
<ProdiSUCKS!!!@hotmail.com> wrote:
>Hi,
>
>I am a college student (actually now finishing a Master in EE) and started
>investing through Bank of America Account in February 2001 (as a sophomore
>in college) with $5,000 available. All I bought was 100 Palm for $22 per
>share and 80 ORCL for $23 per share since I believed in hi tech. That left
>me with about $900 in the account as COLUMBIA CASH RESERVES DAILY.
>Thanks for all the help