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Selling half of my position in Ascent Media

March 25, 2011

I’ve now sold half of my position in Ascent Media as I said I would, though perhaps a bit too soon ($46.50). Nonetheless, I feel lighter, and it’s nice to have a bit more change jingling in my pocket. I do think the shares will trade higher over the next year or so (my new target is $55 a share for the balance of my holdings), but I am trying to be a little disciplined. My original investment thesis was based on ASCMA having more net cash on its balance sheet than its entire market capitalization, and that is no longer the case. Having bought Monitronics International in December, cash at ASCMA is now down to about $100 million, or around $7.50 a share. I think I remember reading a statement from Walter Schloss somewhere about how he always sold a stock when it reached his original calculation of intrinsic value and its margin of safety was gone. He didn’t worry if it went up from there. He just wanted to sleep well at night. So maybe I’m only half as disciplined as Walter.

 You who follow me should know that I purchased LCAPA (another Malone company) for around $3 and change in 2008, only to sell out waaay too soon. So take heed and do your own analysis!

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From → Positions Closed

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