[speak] ThurmSpeaks::The Case of the Accidental Double

This short story is not a whodunit... we've been watching Perry Mason lately. "The Case of the Accidental Double" is a non-fictional account of a stock (Red Hat, Inc. [NYSE: RHT]) that doubled in value even though it was purchased by accident.

On 19 December 2003, I went to sell some RHT shares, but I accidently clicked the "Buy" button and, as if on auto-pilot, clicked the "Confirm" button. In other words, I accidently purchased some RHT shares. Note: This accident would have been avoided if there had not been enough cash in the account to make the purchase.

Because of my long-term confidence in the FLOSS (Free/Libre and Open Source Software) movement, I decided to keep the RHT shares to see how long it would for them to double in value. In a nutshell: It took longer than I expected.

   19 Dec 2003: $16.87 [the accidental buy]
   01 Jun 2004: $28.02 [up 66% in 6 months; fun, fun, fun]
   07 Mar 2005: $10.72 [under water; down almost 37%; boo]
   01 May 2006: $31.35 [up 192% in 14 months from low; up 86% overall]
   18 Sep 2006: fell below $25 
   30 Oct 2006: $16.67 [break even]
   24 Nov 2008: $ 8.56 [lost almost 1/2 of our money]
   09 Sep 2009: $25.00 [up 192% in less than a year from last low]
   23 Dec 2009: $31.75 [will it happen in 2010?]
   26 Jul 2010: $33.64 [missed it by a dime]
   04 Aug 2010: $33.74 [the accidental double]

The accidental double took 2420 days (i.e. 6 years, 7 months and 16 days).

Some Miscellanous Stuff...

I was not expecting the accidental double to happen on 4 August 2010. RHT closed at $32.04 on the previous day --5% below the accidental double price of $33.74. When the RHT shares spiked on 4 August 2010, I was able to use Google to determine when the accidental double took place.

   time 15:12: $33.725  [off by $0.015; a penny and a half]
   time 15:14: $33.79   [notice 15:14 is 3:14pm (pi time)]

   RHT hit an intra-day high of $33.99 at about 3:40
   before closing at $32.05 at 4:00

The following has nothing to do with "The Case of the Accidental Double," but RHT shares are used to highlight the affect of the dot-com correction and the first post-911 bull market.

   06 Dec 1999:  $136.53
   10 Sep 2001:  $  3.12
   31 Dec 2001:  $  8.25
   14 Oct 2002:  $  4.48
   24 May 2004:  $ 27.33

Creator: Gerald Thurman [gthurman@gmail.com]
Created: 06 August 2010
Last Modified: Saturday, 05-Jan-2013 11:15:48 MST