We Sold CECO And Bought AVR

I decided to take some profits yesterday by selling Career Education Corporation (CECO) for a 50.8% return and this morning we bought Aventine Renewable Energy Holdings (AVR) with a majority of the proceeds. We bought on August 29th, 2006 and sold on January 31st, 2007.

August has 31 days, September 30, October 31, November 30, December 31, so 31 + 30 + 31 + 30 + 31 = 153 plus 2 days from the 29th of January to the 31st is 155 days. 365 days divided by 155 days equals 2.3548. I included the extra digits for the real sticklers. 2.3548 times 50.8 equals an annual rate of return of 119.6238%. Really, really cool return.

By the way, it's possible that I'm making some kind of obvious mistake and people who calculate this sort of thing all the time could catch it. I'm open to someone correcting me here. I enjoy math and created this scheme of calculation on my own.

Also, I don't have anything against Career Education Corporation. I have seen a few of our stocks up by 30 or 40% or more and then fall back dramatically. I just wanted to take some profits and reinvest some of the profits in something else. If we were starting today, we might choose CECO. Amazingly, it still fits the criteria after its recent runup.

Click on the title of today's post to view the Career Education graph at Google Finance. Click below to view the Aventine Renewable Energy Holdings graph.

http://finance.google.com/finance?q=avr


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Business Owner Investment