I want to share the story of my first 9 bagger, XM Satellite Radio (XMSR).
I bought 20 shares in December 2002 for around $5 each. XM at the time had zero valuations, zero profits, and nothing but the next generation radio surrounding it. Clearly, this was a speculative stock. I rarely speculate on stocks, but sometime speculative trades are your most profitable investments.
XM shares caught on fire and proceeded to multiply in value 9 times over, hence the catch phrase �9 bagger.� I managed to sell out half my shares at $32 and kept the other half hoping for even larger gains.
XMSR spiked and then the shares began to tumble. I sold the remaining shares at $26 and reaped over $500 in profit from the 2 sales. The shares are approaching $11 and will surely tumble once the American economy falls into recession. When XMSR holdings dip below $10, I’m pulling the trigger again.