PN has had quite the month! With today’s gain I’m looking at an 85% gain in less than a month. Thanks for bringing this one to everyone’s attention Saul. It is now 7.85% of my portfolio and I always struggle with when to sell my winners. I have sold several stocks for nice gains, only to miss huge run ups. I don’t see anything indicating that it’s time to sell, but I can’t help thinking I should lock in some of these gains. Was hoping some of the excellent minds on this board could provide some insight. When would you look to sell PN?
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2020
7.85% of my portfolio
That is quite a large chunk for such a small company. How much was it originally? did you jump in with a 4ish percent position?
I originally bought less than 1% position…as TomE says, (paraphrasing) small enough that if it goes to zero I won’t mind, but big enough to make a difference if it goes up…(or something like that).
I bought in the high $3s. Very small. I bought some more in the high $5s/low $6s.
Even with the gain in the stock, my less than 1% position has grown to around 1.4%, because it was small and the rest of my account has grown in that time as well.
I believe even Saul cautioned about PN that it was a microcap, and he was taking a very small position. And this is what he worries about, is folks taking too much risk with small companies just to follow him. (Saul, please forgive me if I have misconstrued anything.) I just don’t want the wailing and gnashing of teeth to happen should something happen to PN because people bought too large of a position…
Brian
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2020investor,
This article appeared today:
http://www.insidermonkey.com/blog/massive-insider-buying-wit…
As you can see, the CEO purchased shares last week ranging between $6.13 and $7.00 per share. (Other insiders also purchased shares, but essentially at lower prices than these).
IMHO, that means the inside folks feel pretty strongly that the share price will continue to rise…how high, no one knows.
So I can’t answer your question of when to sell, but I have a gut feeling that the share price is going to continue to rise. I am going to enjoy the ride for the foreseeable future. Probably not real helpful to you, but just my thoughts.
Congratulations on you huge gain so far!
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I’m glad someone brought this up because I was having the same sort of doubts. I’m only 18 thus my entire portfolio is pretty tiny. It doesn’t make sense for me to go into a new stock with under 3% of my portfolio because the brokerage fees would be too large of a percentage of that position for it to be viable. So I started with something like 3.5% of my portfolio(the smallest I can reasonably) and now it has grown to about 6.5%. I understand this is quite risky, but I’m also young and can afford to take these kinds of risks. All the insider trading we’ve seen in the 6-7 price range signals to me that the stock can run a bit longer. Plus, I would rather hold onto it for a year and avoid the big capital gains tax :D.
I got in 7 trading days ago at 6.33 and am up 24% since. Not nearly as big a position so I’m going to watch this one for awhile due to the insider trading reasons stated earlier.
Why don’t you consider selling enough shares to get your original investment back? This would accomplish a few things - lower your allocation in this stock, put only your profits at risk, and allow you to diversify your original investment into something else. You might (should?) consider tax implications in your decision.
Just some thoughts.
Best - Craig
brennanadler,
A bit off-topic, perhaps, but on the issue of your brokerage fees, there are brokerage firms out there that charge only $10 per trade, ie- regardless of the number of shares you are buying or selling. I believe there are also brokerage firms that charge even less, $7.95 or something like that.
just my 2 cents.
Also, I have one tiny, for fun/speculation account at Robinhood. No fees. The only interface is an iPad/iPhone app, no desktop version. but it’s well designed and easy to use.
Might look into that. It was at one point invitation only, if it still is reply to me (rather than the board, uncheck ‘Post this Reply to the Boards’ and check 'E-mail this Reply to the Author") and I can send an invite.
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Hi 2020investor,
As for myself, I don’t sell something just because it’s gone up. In fact, I added a little today at $7.49. This is a stock which had been artificially depressed, now is bouncing back, but it’s still just half of the level where it was for most of last year. Its PE is still 9-something, for God’s sake! There’s no bad news. Why would you sell?..but that’s just the way I look at it.
Saul
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I could not help but notice that nobody else chimed in on this after Saul’s response above.
I have the sense that many on this board view PN as a pretty speculative stock; however, speculative should not necessarily be confused with microcap. At the same time, I agree with those who have cautioned that a position in PN should not be a large percentage of a total portfolio).
I am curious, though, to hear from those who DO think it might be risky to stay in this stock as the price rises, primarily what is causing you to have such concerns/fears?
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have such concerns/fears?
Might be less that than an urge to take the money and run with something that was known to be speculative from the start. Of course, there is a difference between Saul Speculative and ordinary speculative.
causing you to have such concerns/fears
i just do whatever Saul tells me to do.
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Good one CandyGram4Mongo 
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i just do whatever Saul tells me to do.
But Saul tells everyone not to buy just because he does.
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I was overweight PN, so today took a little off the table at 7.60, +75% is very good for less than 3 weeks. It has some resistance at the top bollinger band on the daily so consolidation or a pullback is likely to my eyes near term.
Rob
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