In the last five years, EMC spent only a brief period above $20/s and that was the time leading up to the Presidential election when aspirations of an inspired economy drove up the market. Jim introduced us to the company as an undervalued leader in the tech sector. We climbed on board and picked up the stock at $15.90 (including buy/sell commissions).
Months later, we watched the company fall substantially to $9.98. Most of our holdings were negatively impacted by the credit freeze and market conditions but, over time, EMC clawed back from that low to touch it's 52-week high this week.
In unrelated news yesterday, the SEC filed a major suit against Wall Street behemoth Goldman Sachs Group. Although GS came out right away and denied the charges, its stock fell a punishing 12% with the news, causing the financial sector to dip as well (BAC dropped 6%). As scandal detail unfolds early next week, expect investor skepticism to keep activity low and for blue chip values to shrink as a result. If GS, the darling of Wall Street for not taking TARP money and continuing to turn massive profits through the recession, is found to be tainted, expect another lull in trading and a hit to our portfolio. There is no better time, with EMC at a 2-year high, for us to bank our profits, sell our stake and prepare to rebuy HNT, EMC or BAC as the GS story unfolds.
Do you dis/agree and why? I'm interested to hear feedback from each of you and creative feedback other than "second that" or "yes" is strongly encouraged.
5 comments:
I think we have a 3 person vote to sell (jim, me, joe) so I say we press forward regardless. (see other thread "Bank and Move On"
I third that motion. I will put in the sell order for first thing monday.
my vote is to take the profits.
If your looking for me to sell you on a reason that we should sell(or buy for that matter), you have the wrong expectations from the information in contribute to the group. I add my input after doing my own research, but its up to the individual to decide for themselves if this is a good move for the group, instead of having someone completely influence your opion. People love to buy, but hate to be sold.
With that said, i think taking the profits is a strong play! We have not seen too many. As I mentioned at the meeting, i think the market climbed very quickly from its bottom only a year ago and is due for some type of draw back, its only natural. The BlackStone Group LP has a market correction for the second half of the year in their forecast.
Something to seriously consider is that we invested shortly before, during and eventually after what is said to be the greatest economic collapse of our life time. There are quite a few sectors that have yeiled large profits over the past year.
Are we making the most of this significant opportunity?
If you comply with Blackstone and feel that a market correction is looming, should we also bank our 14% GE profit and the 17% gain we've pulled from Yahoo? Other than secure our earnings, how else would you recommend we seize the opportunity?
Hey I checked Zecco for the EMC sale. Is that a Sharebuilder holding? Is CX the only company left we carry on Sharebuilder?
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