Gymboree (GYMB) came onto my radar screen in early May when it became a Magic Formula stock. It was then trading around $45 per share. I calculated it’s Intrinsic Value at $55.20, and set a 30% desired Margin-of-Safety for an entry price of $38.70. Over several weeks in late August / early September, GYMB traded below my desired entry price a number of times. I missed them. No good excuses. And because I missed the purchase, I missed a 70% return when Bain Capital announced a buyout of Gymboree, at $65.40 per share on October 11th.

Here’s a chart showing the opportunity:

I’m comforted in my methods by learning that Gymboree management had been asking $55-$60 per share before Bain came along.

I’ve been so focused on shorting the market that I missed an easy 70% return by buying a great value stock. Not a good excuse. Note to self: Pay better attention to my active stock list. Opportunities can come and go quickly.