Peets Coffees and Teas (PEET)

PEET is a stock I bought at the time of its IPO, mostly because I like Peets coffee! There's an old saying about buying stocks you understand; I understand coffee. (These shares were not the first lot of PEET stock that I bought. The first ones I bought had been at around $7, and I had reaped a tidy profit from them.)

I had the right idea when I bought these shares, I just didn't execute very well. The idea was to "buy on a dip" and by the end of 2002, PEET had made a big dip from the peak in early December. Unfortunately, I had not yet learned enough about interpreting stock charts and understanding the "technical" indicators. Looking back now, I see that the signs for a turnaround just weren't there. Buying when I did was just wishful thinking.

Fortunately, the stock turned around after the earnings report, eventually reaching a a new 52-week high in May. However, I had been chastened by the wild swings in February and March, and sold off most of my shares. The good news is that I made a tidy profit from the last batch (28.5%). The bad news is that by that time there weren't many shares left.