In the form of trade notifications:
Sold out of our 345 shares of YRC Worldwide at today's close of $47.61
It is our opinion that the bull market, in light of all the negative economic indicators being published, is at a very risky turning point in the next couple of months. With the inversion of the yield curve, continual falling of labor participation rates, massive current account deficits, and a less than impressive GDP growth rate, we think that there is a very high probability that the economic well-being of the United States--despite appearances--is headed for a decline (or at best, lack of growth) over the course of this year and the next.
While we could be wrong, this is a chance we are not so willing to take with highly market correlated equities like YRC Worldwide, and instead, we plan on reverting our focus back to securities that is catalyst driven/non-market correlated, and hedge our portfolio against any further market decreases that might come in the next couple of months.
Bought 965 shares of GBN at today's close of $1.65, ramping it up into a 15% for the initiative.
I like Goooooollllddd (for market hedging purposes).
Sold out of 9,306 shares of ETLT at today's closing of 0.60 will keep selling until this company is 5% in the portfolio.
After re-evaluating the company, we've come to the conclusion that the company is already at least fairly valued in terms of the cash on their financial statements. They are trading AT cash. Despite potentials for the company to acquire more cash in its operating future, we are not without the same kind of concerns that we've had before when we first invested in this company:
1.) Uncertain revenue streams from embryo transfers/meat sales. What happens if the Chinese government suddenly stops subsidizing this?
2.) Uncertainty regarding the operations of E-Sea. Women don't need to go to clinics and examine their breasts on a quarterly, or even annual basis. This is not sustainable revenue, despite government subsidies.
3.) Everything is fake
If 4th quarter does give us the 100% upside we were looking for, then kudos and we will gain more than enough from a 5% position.
If however, 4th quarter comes out with something else unexpected... e.g. if management states that revenue streams will be lower this year, financial statements can't be filed on time... etc. Then we will lose tons of money with a 15% position.
Bought 36 shares of PONR at today's close of 29.77.
Our thesis has not changed for this company. We are merely ramping it up to 15%.