Sold Gravity (GRVY)
Today, as the launch of Ragnarok 2 in Korea was announced, I sold the second half of my position in Gravity (GRVY). My original investment thesis was based on purchasing the ADRs below cash value. They had appreciated significantly since the beginning of this year and, with today’s announcement and subsequent upward spike of the ADRs, it was time for me to review the position. Clearly the original margin of safety had been reduced or eliminated, and it will still require significant time for the newly launched game to translate into an improved bottom line. Despite the fact that most of my remaining shares were purchased less than 6 months ago (and therefore the sale will result in a short term gain) I felt it was time to exit if I could get my price. I put in a limit order at $3.47 this morning and, unexpectedly, it was filled. I believe the ADRs still have upside and could double from here but I have reaped a better than average return for my short holding period.