The past week was an exciting one for our finances. My company stock advanced an all time high just before the earnings announcement and the dropped over 7% when the results were disappointing. So I've spent a large amount of time monitoring the stock price. Fortunately, I took the opportunity to exercise stock options and sell company stock near the all time highs, locking in gains and profits before the stock dropped.
Of course, the drop in stock price has been a negative financially. Surprisingly, I am somewhat relieved the stock prices has pulled back. The stock price was getting uncomfortably high based on the company situation. It had become just about priced for perfection, which usually means a near term major disappointment will happen. I would have been really worried if the stock price had advanced another 3-5% right after the announcement of Q1 results. Although the results were disappointing, I think the stock will be able to recover from it.
Hopefully, the stock won't decline too much further and will settle back into a stable price range for now. That way, I won't need to be making frequent decisions on selling stock or exercising options, due to concerns of a market pullback.
For more on Reflections and Musings, check back every Saturday for a new segment.
This is not financial advice. Please consult a professional advisor.
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