I made my third of at least four sales last Friday afternoon, selling National Healthcare Corp (NYSEMKT:NHC) at $42.25.
This one became a sell target for a few reasons:
First, and most importantly, it was a small position and I've been deciding that I'll try to re-evaluate most of my smaller holdings and sell those to which I'm not interested in adding.
Second, while I think nursing homes is a growth industry in the long term, and a decent company, I don't think that earnings should climb all that quickly, the shares are not particularly bargain priced at this point, and the dividend, while growing, is still puny.
I'm satisfied with my 20% gain and I don't think that the shares should climb dramatically over the next few years. It's possible that I'll miss a big boost if this small company gets bought out by one of the larger players in the industry, but with large insider ownership and a tight relationship with the REIT that owns their properties, that doesn't seem all that likely to me. This is a small and sleepy company. While I don't see many negatives, right now, I don't want to up my investment here. So I'll take my gain and get out so I can consolidate my funds into some companies that I feel are better opportunities.
I still plan to sell at least one more stock from my too-broad portfolio over the next short period, though it's a little more difficult with the market hemmorrhaging cash at the moment. Now that I've generated some cash with these sales, I'll be looking to make follow-up purchases in some of the companies that I already hold. Especially if this downturn in the market brings some bargain prices to the surface.
NHC 1-yr chart: