Sell #3 -- National Healthcare (NHC)
I made my third of at least four sales on Friday afternoon, selling National Healthcare Corp (NHC) at $42.25.
This one became a sell target for a few reasons:
First, and most importantly, it was a small position and I've been deciding that I'll try to reevaluate most of my smaller holdings and sell those that I'm not interested in adding to.
Second, while I think this is a growth industry in the long term (nursing homes), and a decent company, I don't think that earnings should climb all that quickly, the shares are not particularly bargarin priced at this point, and the dividend, while growing, is still puny.
I'm satisfied with my 20% gain and don't think the shares should climb dramatically over the next few years. It's possible that I'll miss a big boost if this small company gets bought out by one of the larger players in the industry, but with large insider ownership and a tight relationship with the REIT that owns their properties that doesn't seem all that likely to me. This is a small and sleepy company, I don't see many negatives but nor do I want to up my investment here ... so I'll take my gain and get out so I can consolidate my funds into some companies that I feel are better opportunities.
I still plan to sell at least one more stock from my too-broad portfolio over the next short period, though it's a little more difficult with the market hemmorrhaging cash at the moment. Now that I've generated some cash with these sales I'll be looking to make follow on purchases in some of the companies I already hold if this downturn in the market brings some bargain prices to the surface.
This one became a sell target for a few reasons:
First, and most importantly, it was a small position and I've been deciding that I'll try to reevaluate most of my smaller holdings and sell those that I'm not interested in adding to.
Second, while I think this is a growth industry in the long term (nursing homes), and a decent company, I don't think that earnings should climb all that quickly, the shares are not particularly bargarin priced at this point, and the dividend, while growing, is still puny.
I'm satisfied with my 20% gain and don't think the shares should climb dramatically over the next few years. It's possible that I'll miss a big boost if this small company gets bought out by one of the larger players in the industry, but with large insider ownership and a tight relationship with the REIT that owns their properties that doesn't seem all that likely to me. This is a small and sleepy company, I don't see many negatives but nor do I want to up my investment here ... so I'll take my gain and get out so I can consolidate my funds into some companies that I feel are better opportunities.
I still plan to sell at least one more stock from my too-broad portfolio over the next short period, though it's a little more difficult with the market hemmorrhaging cash at the moment. Now that I've generated some cash with these sales I'll be looking to make follow on purchases in some of the companies I already hold if this downturn in the market brings some bargain prices to the surface.
This article posted by One Guy @ 5/15/2006 10:28:00 AM 0 comments
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