Activities: Recent Stock Buys and Sells
Posted on 03. Dec, 2011 by TheFreeInvestor in Portfolio, Stock Analysis
In past three months, as the market bounced around violently in lock step with the news from Europe, I bought / added to few of my positions and liquidated some of the residual holding where my investment thesis didn’t play out for years. The only new name in my portfolio is Mako Surgical (MAKO). The company sells the RIO (Robotic Arm Interactive Orthopedic System) for use in less invasive knee replacement surgeries. Recently, they have expanded the usage of RIO to hip replacements too. The ramp up in hip replacement has been unexpectedly rapid. As an early stage company, it is still losing money. But, I am betting that the product and the razor-blade business model will be profitable in few years. In addition, the volatile market presented some good bargains and I used the opportunity and added to my existing positions in Amazon (AMZN) Aflac (AFL) John Lang Lasalle (JLL) National Oilwell Varco (NOV).
I sold few industrial stock positions — Precision Castparts (PCP), TranDigm Group (TDG) and Hurco (HURC). Both PCP and TDG have gone up significantly and seem to be fully valued right now. HURC is down significantly since I purchased. At this potin, I think, I have held Hurco long enough and I don’t see many positive catalysts. Similarly, I sold my position in PAC because of the lack of progress in the investment thesis after more than 5 years of holding the stock. Finally, I sold the serial acquisitive company — Nuance Communication (NUAN) based on valuation. With all the rumors of being part of iPhone flying around, I think the stock is valued high right now and I am happy to take the tripling of my investment since 2006 and close out the position. If the iPhone rumors are confirmed, the stock might go much higher. But, with just a small tracking position I had, I am happy to close out the position now.
(Disclosure: As of the publication of this post, I hold long position in AFL, AMZN, JLL, MAKO and NOV. Please read the full disclaimer on this website.)
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