A while ago I posted on this board recommending the purchase of STB, a company that did not fit the focus of this board. At the urging of community members, I stopped making such posts.
I am only posting now because I gather (from emails) that some people did buy STB in reaction to that post. Such buys were made initially at a price of about $3.50, and later buys were made below $3.10. I feel obliged, under these circumstances, to quickly post further thoughts. This will be my last post on the topic – I promise!
To buyers of STB – my theory was that STB was undervalued, with a sustainable high dividend. The play was to collect dividends while waiting for a return to a fair value. In the two months since the original post, the price has moved up to $4.40 – a 25% to 40% gain, depending on your purchase price. I believe that this is a significant move toward fair value, one that has occurred far more quickly than I ever expected.
So, I am selling half of my position, if I can, at $4.40 tomorrow (or soon). I will sell the other half at $5.50, if given the opportunity in the near future.
STB is not in any way a Saul-type play. There is no grand victory to be had here. This is purely a valuation play.
Of course, if you hold STB, you should do whatever you want. I just wanted to explain what I will be doing, in case some of you bought STB based on my post.
I apologize for bringing this topic up again. Hopefully the title will help reduce the extent to which this post wastes time of community members here.
Rich
