Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decisions based on information on this website.
A few moments ago I noticed that my remaining 71 shares of Coach (COH) had hit a new sale point and I sold 10 shares of Coach (COH) (1/7th of my position), at $53.41. These shares were acquired 2/25/03 at a cost basis of $8.33/share, so I had a gain of $45.08 or 541.2% on these shares.
This was my tenth (!) partial sale of Coach, and using my own idiosyncratic system of selling at targeted appreciation points, I have sold at approximately 30, 60, 90, 120, 180, 240, 300, 360, 450, and now 540% appreciation levels.
When would I sell more shares? Since I am up to the eleventh partial sale level (where I have never been before), my goal would be to sell 1/7th of my remaining shares should the stock appreciate to a 630% appreciation level. I am going by 90% intervals as this is my third group of four sales. I hope you follow this. Thus, since my basis is at $8.33/share, the next targeted sale on the upside would be at 7.3 x $8.33 = $60.81. On the downside, I plan on selling if any 'bad' news should be reported, otherwise, if Coach retraces to 1/2 of the highest % sale at a gain, which works out to a 315% appreciation level or 4.15 x $8.33 = $34.57, I would sell all remaining shares.
One of the unfortunate aspects of selling any shares in Coach is that this is the strongest stock in my portfolio. This is compounded by my early 1/4 position sales which reduced the size of the position significantly. Hopefully, as I have now switched to the 1/7th position sale at the same targeted appreciation levels, we shall find that both the size of the portion sold as well as the remaining value of the holding should continue to grow over time.
Thanks so much for stopping by and visiting! If you have any comments or questions, please feel free to leave them on the blog or email me at firstname.lastname@example.org. P.S., since I am at 19 positions, and under my NEW MAXIMUM of 20 positions, that 'nickel' is burning a hole in my pocket already!