Category Archives: Live Trades

BGFV

A lesson I learned last year from Cato Corp, IDT, and Manning & Napier: sell out of stocks that post an operating loss and either lock in gains or cut the bleeding.

I lost 51.56% on Manning & Napier, 51.05% on Cato, and 21.44% on IDT. If I sold when their core business posted an operating loss, I could have left the positions with minimal losses. I’m fine with an EPS miss or even a loss at the bottom of the income statement that is related to a one-time expense or an accounting issue, but I think it is a clear sign that I’m in a value trap when the core business posts a loss at the top of the income statement.

I’m sold out of my 405 shares of BGFV @ $8.1293. I made money on the position, 8.27%. BGFV might continue to do well, but I’m going to stick to this sell rule. I think the rule should prevent nasty losses even if it doesn’t work 100% of the time.

big5

PLEASE NOTE: The information provided on this site is not financial advice and it is for informational and discussion purposes only. Do your own homework. Full disclosure: my current holdings.  Read the full disclaimer.

Trades

Continuing with the rebalance. I hope to have my 2018 portfolio set up by the end of next week.

I executed the below trades this morning:

Buy 21 shares of CTB @ $34.75

Buy 405 shares of BGFV @ $7.48

Buy 465 shares of FRAN @ $6.64

Sell 37 shares of VLO @ $86.78

Sell 150 shares of AEO @ $17.38

Sell 40 shares of DDS @ $57.58

Sell 22 shares of FL @ $44.72 (reducing the position back down to $3,000. The position grew by 1/3 since I bought it in September)

Sell 81 shares of CATO @ $15.18

PLEASE NOTE: The information provided on this site is not financial advice and it is for informational and discussion purposes only. Do your own homework. Full disclosure: my current holdings.  Read the full disclaimer.