On Tuesday, I mentioned that the shares of FragranceNet.com (FGNT) in Fat Pitch Financials’ real money portfolio (my son’s Coverdell ESA) were cashed out for a total of $484.03. Today, I want to take a few minutes to review the performance of this investment.
I purchased the 499 shares of FragranceNet.com all the way back on June 7, 2005. I got those 499 shares for $0.58 a piece. My total cost, including commission, was $297.37. I made $186.66 on that trade, which is a 63% gain. Given that investment took 204 days, that trade had 139% APY or using my new metric it comes out to 112% average annualized rate of return.
I thought my rate of return was going to be less than 100% this time, since the transaction took so long. However, I still made a superior return given the low risk nature of this transaction. FragranceNet.com definitely had a lot more drama than most going private transactions, but I think it was still worth the effort. If you are interested in current going private transactions, I encourage you to contribute to Fat Pitch Financials to gain access to my list of current going private transactions.