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Portfolio changes

December 26, 2016

Just a quick update to note several portfolio changes in December. I have sold my Bank of America A warrants (BAC.WS.A) and added a small position in Support.com (SPRT).

Bank of America A warrants have tripled since this summer. With the prospect of rising interest rates and the generally accepted perception that the new administration will reduce regulations investors have bid up bank stocks to levels we haven’t seen since before the 2008 financial crash. I think this has happened too quickly and now bank stocks are a bit overvalued in my opinion. I don’t know what the new administration will do but I do know that banks, left to their own devices, i.e. with less regulation, have a tendency to overreach for profits and get themselves into sticky situations. And, no, I don’t think the future will be any different from the past.

I took a small position in Support.com after reading the writeup in Shadow Stocks and reading the latest 10Qs; I’m always on the prowl for small cap net-nets with some sort of catalyst (in this case an activist investor and new management). Unfortunately since I began accumulating the shares have gone up 10%. If the shares dip down below $.70 I’ll be filling out my position.

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