Tuesday, April 13, 2010

Bookkeeping: Selling Most of Wyndham Worldwide (WYN)

There is no specific technical reason to sell Wyndham Worldwide (WYN) and being one of our few consumer discretionary names, it has been an outperformer of late.  And a great stock for us the past 1 year+.  I've usually been able to trade around a core position in the name, buying on dips - selling when it pops but dips have become extinct. That said, with the stock up 30% in 2 months (and the last place we made a material purchase on Feb 5th) I am going to sell the majority of the position and just keep a 0.1% allocation.

If the market ever can pull back again, and stocks fall - I'll obviously buy back the allocation. Finally after thus huge run the valuation is making some sense at 15x forward 2010 estimate - reasonable for a hotel chain but at a huge discount to peers which are being valued on Internet 1999 valuations.

Long Wyndham Worldwide in fund; no personal position


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