A couple more stop losses and one buy

Some personal portfolio updates

By Travis Johnson, Stock Gumshoe, January 20, 2016

This is getting a little tiresome, no?

Two new stop loss trades in my personal portfolio to tell you about — I sold half of my Lancashire Holdings position at $8.35 when that stop loss hit, my inclination would have been to buy more near these prices but, as I’ve been doing for six months or so, I’m testing my inclination versus a stop loss strategy… and the only way to test that and have meaningful results when it comes to my ability to handle this strategy emotionally is to do it with my real money in my real portfolio.

I also stopped out of my position in the PNC TARP warrants (PNC.WS) when those dipped below $20. We’re getting closer to the expiration date of those warrants (December 2018), so although I still think they’re undervalued and a good way to get exposure to PNC at $67 (PNC shares are around $84 now, the warrant strike price is right around $67), I’m letting the stop clear me out because we’re now approaching the time that these still-deep-in-the-money warrants could see what little premium they have begin to erode… particularly if the yield curve doesn’t steepen and give PNC a chance to earn more money. I have held on to my JP Morgan TARP warrants thus far, despite the fact that they’ve triggered a stop loss warning as well, because I think JPM is a bit more foolishly undervalued than PNC right now and should at least be able to bounce back to $60 before expiration, but that could turn out to be a mistake (it’s also a much smaller position for me, so it’s easier to leave that risk on the table). We’ll see.

And I added marginally to what was (and still is) a very small position in Physicians Realty Trust (DOC), which was taken down yet further today because of a secondary offering. REITs require secondary offerings to grow in almost every case because they’re not allowed to retain earnings — they need more capital to make acquisitions, so they have to either borrow it or sell more equity shares. That’s what DOC did today, and it was taken poorly (though almost all stocks are headed down, too, not just DOC). I bought because the offering was well received and it was possible to buy shares below the offering price (the secondary was ...

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