I’m just not seeing how this forms a basis for selling shares of BOFI.
I guess I wouldn’t call my selling a “basis”, more a “hunch”, since this was a strike against BOFI that wasn’t caused by shorts. I’ve held through all the short attacks, but I think this news in conjunction with I’m sure some upcoming short articles that will follow will give me an opportunity to get back in lower than today’s price.
I could be completely wrong, I am a lot, but it’s a part of my investing I’ve been changing over the past year that has worked out for me more times than not.
When the CMG food safety scares came up, I sold out of half my position around $600, to be buying it back now around $400. Pretty happy about that, as I think things there will be improving from here.
In the past I’ve always held to the Fool mantra of rarely, if ever, sell, and overall it has worked well for me. I’ve held many stocks I own for over 10 years. What prompted this new style was holding too many Fool stocks to HUGE gains, only to ride them all the way back down or further (SCSS, DDD, and LL to name a few). If I had the mindset I currently do, I would not have rode them all back down to lows, but would have sold early on in the bad news cycle, and then waited and bought back in (if I still liked the company’s prospects) when things seemed to be improving.
It’s not market timing, it’s selling when events make it probable (in my mind, at least) that drops could be coming.
I admit, this was a small strike against BOFI, but it’s never taken much to move this stock down in the past, and I have to admit, because of that, I’ve always been a little shaky holding this one as IF any of the claims against them do pan out, the stock will drop hard and fast.
That being said, I was happy to book some gains today, and if a better buying opportunity presents itself, I’ll probably get back in again.