Thursday, July 1, 2010
A few days ago I let go of a few positions as there is no clarity in the economy with respect to direction. Several pundits if you would like to call them that have opinions ranging from double dip recession to slow and sluggish growth. The one observable trend that I can muster from recent developments in Europe, sluggish domestic home sales in the US, and the recent anemic report on private job growth from the ADP report is that those double digit growth rates in the S&P over the past little while have most likely cooled off. Economic growth going forward? I honestly don't know. With that, I let go of America Movil (AMX) for a small gain of 6%. The company still has long term prospects, but I'm looking to protect my portfolio and find a better entry point. Another position I let go was Herman Miller (MLHR) after holding on to this stock for almost two years. A loss of 20% Ouch. Again, a move to simply protect the portfolio. This was a rather tough choice as the company operates with good fiscal health and is under good management of Brian Walker. The company missed estimates on the most recent quarter, but apparently has a good steady pipeline of orders coming in the current quarter. I'll be keeping watch. The last stock I tried to exit was Joe's Jeans, but the strike price never hit... So fancy jeans will still stick around for a while in the portfolio.