Friday, August 6, 2010

Bookkeeping: Selling Majority of Remaining BorgWarner (BWA), (PCLN), Polypore International (PPO)

I've added some long exposure here in the past 48 hours, so to balance that I am going to cull some other names.

BorgWarner (BWA) has had a big run, relative to the type of stock it is (staid).  I am going to sell the majority of what I have left (keeping a holding position of 0.1%) and try to buy back lower (hopefully below $44).  I am locking in roughly a 19% gain. (PCLN) goes without saying, what a surge.  I don't see that gap filling this quarter - it will take a disappointing earnings report sometimes 2-3 quarters out, and/or a huge drop in the market for this event to happen.  That said, I am going to sell the majority of what remains in a VERY STRONG chart and keep 0.1%.  Let me emphasize as a stand alone company this chart should not be sold; I am however thinking holistically within a portfolio of positions... I've added other equities so to keep my long exposure at X% I want to sell some winners.  I'm booking about a 35% gain here.

Polypore International (PPO) looks like it has a much better chance of 'filling the gap' soon, unlike  I am again selling almost the entire position (leaving 0.1%) with intention to buy back if/when that gap fills.  If it does not happen I have other stocks to deal with on the long side.  I am hoping to buy back around mid $24s if and when.  Securing a 15% gain here.

On a temporary basis I am going to have more individual positions than I normally carry for 2 reasons.  I am sitting on 4-5 stocks with 0.1% allocations that I have taken profits on, but don't want to 'exit' since I'd like to buy them back, and I tend to lose track of stocks unless they are staring back at me in the portfolio each day.  Second, I have "one" commodity position made up of a 4 stock basket - I am treating that as 1 position.

Again if you are a "momentum guy" you will scoff at selling any of these stocks, but to each their own (strategy).

Long all names mentioned in fund; no personal position


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