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
x
