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
Tuesday, April 13, 2010
Bookkeeping: Selling Most of Wyndham Worldwide (WYN)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows