Sold Weight Watchers (WTW) and B&W; Enterprises (BW)
Today, I sold my entire positions in Weight Watchers (WTW) and B&W Enterprises (BW).
My Weight Watchers position was eliminated at an average sale price of $19.40 a share.
My B&W Enterprises position was eliminated at an average sale price of $10.22 a share.
My Weight Watchers position had an average cost of $37.68 a share. So, I realized a loss of 49% on Weight Watchers.
My B&W Enterprises position had an average cost of $15.48 a share. So, I realized a loss of 34% on B&W Enterprises.
Note: I got my shares of B&W Enterprises as part of the Babcock & Wilcox spin-off. I bought that stock ahead of the spin-off. I still retain my shares in BWX Technologies (BWXT). My BWXT position is about 10 times the size (in market value) of the BW position I just eliminated.
My portfolio is now:
Frost (CFR)
BWX Technologies (BWXT)
George Risk (RSKIA)
Natoco (a Japanese stock)
and
Cash
In rough terms, Frost is about 40% of my portfolio, BWX Technologies is about 25%, and George Risk is about 20%. Natoco is less than 5%. The rest is cash.
So, about two-thirds of the portfolio is just Frost and BWX Technologies and more than six out of every seven dollars is in just three stocks.
Why did I sell WTW and BW?
Weight Watchers, B&W Enterprises, and Natoco combined were now only about 10% of my portfolio. I had no intention of buying more of these stocks. I like individual positions to be about 20% of my portfolio. So, both Weight Watchers and B&W Enterprises had become distractions I wanted to eliminate at some point.
Also, this portfolio is taxable. Three stocks account for 85% of the value of my portfolio and those three stocks are anywhere from 80% to 150% higher than where I bought them. I hope to buy a new stock sometime this year. To make room for that stock, I’ll have to trim some positions with large capital gains.
Today’s sales provide me with capital losses.
As a side note, you may have noticed WTW stock was up over 30% today and B&W Enterprises was down over 30% today. My Weight Watchers position was several times the size of my B&W Enterprises position, so today’s rise in WTW’s stock price may have had some influence on my decision to sell right now. However, I could have opted to eliminate just WTW and keep BW – and I didn’t. So, I’d still say the sale is mostly not due to short-term price movements.
I really just wanted to:
1. Eliminate positions that were less than 10% of my account
2. Realize capital losses
3. Raise cash for a future stock purchase
Talk to Geoff about his Sales of Weight Watchers (WTW) and B&W Enterprises (BW)