I'm selling Novartis on valuation--and market risk
04/03/2013 4:17 pm EST
Given the extended nature of the current market rally, I think its risky to push my target for Novartis higher here. I don’t this is the time to add risk to a portfolio.
What I’d prefer to do is sell this stock at my target price and look for a stock in the sector where the risk has come down after recent news. I’ve got one in mind and I’ll be looking to add it after the volatility of the next few days—meetings of the Bank of Japan and the European Central Bank, and Friday’s numbers on U.S. jobs—has receded.
I’m selling Novartis with a 14.7% gain since I added it to my Jubak’s Picks portfolio http://jubakpicks.com/ on December 7, 2012. The shares paid out a dividend on March 1 to shareholders of record as of February 25.
Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund http://jubakfund.com/, I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did not own shares of Novartis as of the end of December. For a full list of the stocks in the fund as of the end of December see the fund’s portfolio at http://jubakfund.com/about-the-fund/holdings/