Don’t tell Genuine, but NFI tanked today. I sold all our positions at 42.60ish. Usually, I don’t react to bad news till I get more information directly from the company. But this bad news smacked of where there is smoke there is fire. So I dumped all but a 150 shares. I bought all our shares at a split adjusted price of $9 so it wasn’t a horrible thing for me. (I had over a 500% return not counting the excellent dividends) But if you bought it on my recommendation two weeks ago, you wouldn’t be a happy camper right now.

I decided to sell for a few main reasons:

1. NFI didn’t file with the SEC to let folks know they had to close their NV offices due to licensing snafus. The licensing snafus don’t seem like a big deal. The big deal was that they seemed to be trying to HIDE IT from investors by not talking about it.

2. They listed offices on their website that didn’t exist.

3. They didn’t issue a statement about the WSJ article right away. (They have after hours)

4. Interest rates are probably going to rise anyway so the stock is going to end up taking a hit once Mr. Greenspan changes the bias for rates….

Enron, Tyco and Martha just have the markets really spooked about issues like this. If you are a gambling person, you could double down right now and sell in a few months and be a very happy camper….. Im just risk adverse now that I am not working. This money is money I use to pay my mortgage and feed my kids…. Can’t be gambling like I did in the old days of the tech bubble…

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