We are selling a recent purchase (from 8/4) that performed well and now offers below average returns (though still quite substantial). The stock rallied almost 10% while the market fell slightly since we bought it. While I really like the company, the situation has changed since the purchase: It is no longer overbought, and it no longer stands out against other choices. We are also trimming a position that has bounced but has been a big disappointment and a contributor to our overall performance challenges this year. To my target, the sell has a 31% one-year projected return, while the trim has a 39% projected return.
We are adding a new name that I have followed for the past six months since they appointed a new CEO. The stock offers 50% upside to my target, has been performing well fundamentally and has a few drivers ahead even in a challenging economy. We are also adding to two positions, both of which offer substantially higher projected returns than our average holding.
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