Time to let go
Today's Financial News - Posted December 15, 2008
Today’s Financial News editors decide to cut bait on these positions…
by J. Christoph Amberger
Baltimore — (TFN): As the year wraps up, it’s time for us to eliminate the less successful positions from our TFN tracking portfolio. Like (almost) everyone else, we’re about to chalk 2008 up as the worst performance year ever. Thanks to the nosedive of the stock market in September and October, the losses we’re about to take are heavy… but necessary.
With the very economic underpinnings of the U.S. economy in limbo — consumer spending, NOT the ability of carmakers to churn out unsellable cars! — we’re ready to throw in the towel on some stocks for good. Others we will repurchase at a later point in time.
From my own list, I’m cutting loose Pakistani bank MCBBI, as well as Global Income Fund, Inc. (OTC:GIFD) and Synovus Financial Corp. (NYSE:SNV).
Laura Cadden recommends: ”Let’s drop shares of luxury scooter-maker Piaggio & C SPA (PINK:PIAGF). Although I feel that scooter sales will increase dramatically next summer (Herr Amberger disagrees, by the way), it’s not worth holding onto at our buy-in price. We can snatch up shares cheaply in the Spring.
“Sell your shares of HSN, Inc. (NASDAQ:HSNI). The economy is killing this newly independent multi-media retailer. Time to let it go.”
Andrew Snyder adds, “The Vanguard Short-term Bond Fund (NYSE:BSV) did exactly what I said it would. It preserved your investment during one of the scariest economic environments in American history and paid a healthy dividend to boot. With the equities market on the verge of a rebound, it is time to put your capital back in the game. Take your profits and start buying.
“OPEC is up to its same old dirty tricks. Oil prices are soaring today and the cartel is aiming for crude prices at $75 per barrel. Whether it will reach those levels or not, our position in the UltraShort Oil and Gas ProShares (NYSE:DUG) has been lackluster. Oil prices plunged just as I promised, but this position has not performed as anticipated. Let’s sell it and not get caught if prices make a prolonged turnaround.”
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Next Article: Gazprom is setting the stage for the February showdown
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