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New Year changes – selling WCG

January 4, 2011

I’m not changing much for the new year. I do hope to finally review some additional positions I have in my portfolio that I never got around to sharing with readers previously. Most of these however, are not currently trading at prices I would consider attractive so these reviews will be more to see whether I should continue holding or not.

The one last 2010 change in my portfolio holdings was the sale last week of Welcare Group (WCG) shares at about $29.25 per share. I’ve been a bit perplexed by the company for a while. The business didn’t rebounded as quickly as I anticiapted after the 2008 accounting scandal. The resignation of a prominent board member last year because of what seems to me, at best, to have been some sort of petty ego struggle, and at worst a portent of something fundamentally wrong with the management structure, combined with the 20% drop in the share price last year convinced me to part with my WCG shares. Furthermore, shares are no longer trading at or around cash per share. I’m sure that next week some good news will come out and the share price will bubble up to the upper $30s again but I just can’t in all conscience hold any longer.

The stock market is getting a bit frothy and I can’t find anything really good to buy. That’s a flag for me to begin lightening up so I’m scouring my portfolio for additional positions to sell. I’m hoping the market will help me, and a few of my positions will hit their target sell prices over the next couple of weeks.

Happy investing to all in 2011!

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From → Positions Closed

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