We're closing the 0.8% stake in Petrobras (t.com/quote/PBR">PBR) - while Hurricane Gustav bears down on (potentially) the Gulf of Mexico and that could drive up all the energy stocks - that pretty much sums up the reason to sell for now. They all trade together in one monolith, as if they are all the same company. So having multiple stocks when there is little to no discerning between one or the other is a moot point until the next leg of the commodity move (up) begins. Which could be be tomorrow, next week, next month, next quarter, or next year.
Petrobras is one of the few names I would be comfortable leaving for a 5 year vacation on and coming back to - I continue to believe it has the potential to be the most highly valued stock in the world by market capitalization, and it will be the next era's Exxom (XOM). However, for reasons stated above I'm letting this one go for now as we have other stocks that basically move in the same direction and in same magnitude. We just hold far too many names at this point even if many are overlaps of each other (i.e. creating baskets).
We've held this name since January 4, 2008 and we leave with a $3300 gain. I'm continuing to bleed off these global growth names one by one, and eventually one of these sales will be the tinder for for a commodity rally ;) While the stock is back down to yearly low levels (and thus might serve as a good buying opportunity) unlike the previous 2 iterations (as shown below) this time it is below all key moving averages, so I'm not quite so bullish for this episode. That said, that is a short to medium term outlook - for a long term hold this is among the best in terms of fundamentals. But this is not a market rewarding fundamentals.
Today's actions have removed 3 sub 1% positions from the portfolio and I continue to look for others to cull.
No position
Did you like this article?
's
