Global Payments Rated a Hold

I was feeling a little like Chicken Little earlier today, feeling for sure that the 'sky was falling'!

All of my stocks were hitting sale points and one by one I sold every single one of them except Covance (CVD). Perhaps that is the 'shake-out' everyone was looking for, but I didn't panic. I just hit sale points, and I am now down to one position.

Global Payments (GPN) was the last to go. And also my latest purchase. I sold my 140 share position of GPN at $44.0805. I purchased Global Payments just three days ago (!) at $48.30. This represented a loss of $(4.22)/share or (8.7)% since my purchase. Global Payments closed higher at $46.66, down $(2.27) or (4.64)% on the day. With the stock rebounding well above my own 'Chicken Little' price, I do need to change my rating. However, I do think that a small change this time is in order, so:

GLOBAL PAYMENTS IS RATED A HOLD

As I sold each of my holdings Monday, I did so in what I would call a disciplined fashion. I did not sell because of what I expected the market to do (if so the market reversed itself into the close to recover more than half of its dip), but rather simply based on the price performance.

I am literally down to one holding in my portfolio, Covance, which is still well above its sale point.

I now have four 'permission slips' to be adding new positions. I shall try to be relatively cautious to avoid compounding my losses, but will look to pick up the highest quality stocks as I define them, that are performing well in a market that is also moving higher.

This part is the arbitrary and judgement part of the whole formula. As long as a stock fills the criteria I utilize, and the market itself appears to be moving higher, I will consider picking up shares.

Disclosure: The author owns CVD and sold his shares in GPN.

Comments

[venividivici:]

Perhaps the silliest article I have read on SA. My advice to you is to find another profession.

2008 Oct 07 04:49 AM

[Robert Free...:]

Veni,

Thank you for your comment. Silly? Perhaps. I try to be entertaining as well as informative. In this particular entry drawn from my blog, I have tried to convey the why of my own particular sale, and how it affects my idiosyncratic portfolio management strategy.

I do think these thoughts are valuable but perhaps taken out of the context of the rest of my entries may sound silly. I apologize if I have offended your sensibilities.

2008 Oct 08 07:57 AM