Trade: On Semiconductor

Today, after making an accidental buy trade, I sold essentially what was 12% of my stake of the stock at a price of $8.13.  At the time of the sale, my remaining stake, after previous transactions, had amassed an increase of almost 100%.  I decided this was the right time to follow discipline and remove the remaining investment I had in the stock.  The stock price was over 5% higher than my price target (and closed even higher yet). and I could use that money for new investments.  I also am concerned that the stock's price is starting to get ahead of what it's capable of earning over the next twelve to eighteen months.  After the close of today's business, the holding continues to be a 5.3% holding in my portfolio.

While I do want to caution the stock's run, I also want to note that I do see strength in the stock's future.  Their focus on automation, AI, and self-driving cars are key factors to the stock's run and its future potential right now.  The company is performing well and their acquisition of Fairchild Semiconductor appears to continue to reap rewards.  

Now that I'm playing with "the house's money," I will continue to watch the stock, but not always as closely.  I hope to still maximize the gains in the remaining position it holds in my portfolio and as a tech stock that can have wild swings, it will be important for me to not lose total sight of what's happening.

One final note, in upcoming summaries, you'll notice a dramatic decrease in the stock's unrealized gain.  Please recognized that this will be due to first in, first out processing of the stock's sale.  Because I made an accidental buy trade of the same size that I meant to sell, I have a higher price holding in my portfolio (at about $8.12) and ended up releasing more cheaper positions when I sold back down to the intended position size.  This is an unfortunate event that cost me additional transaction fees, but I want to be transparent of what happened.

Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash.  Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.

Nothing on this site should be taken as advice, research, or an invitation to buy or sell any securities.  All views expressed are solely of my own and I am not a professional money manager.  Please consult with your financial adviser before taking any action in your own portfolio.