This article is a member’s only post for Patrons of DIYInvesting.org and provides information on changes in my personal stock portfolio.
I made a pretty large change to my portfolio this week with the sale of one of my larger positions. Meanwhile, I’ve continued to increase the percentage of my portfolio allocated to my second largest holding.
Sold: GameStop (GME)
I have liquidated my entire position in GameStop as of this week. Over the past two months, I’ve become more and more certain that I made a mistake when I first invested in GameStop shares. I was waiting for the most recent earnings report to make the final determination on whether my investment thesis was dead.
With the release of GameStop’s Q1 2019 earnings report this week, I have confirmed my mistake of investing in GameStop. I began selling in the after-hours following the earnings release Tuesday. I completed full liquidation during the day Wednesday morning.
GameStop represented a major loss for me of approximately 50-55% over the holding period, inclusive of dividends received. My average sale price was $5.54.
Expect to see a full post-mortem analysis soon after I have had the chance to fully digest my lessons learned.
Bought: Entercom Communications (ETM)
I continue to purchase shares in Entercom Communications and have converted some of my sale proceeds from GameStop into additional shares of Entercom Communications.
As you know, my intrinsic value calculation for Entercom is in the $13 range, making the current share price of below $6 an attractive entry point.
Over the past two weeks, I’ve been acquiring shares between $5.64-$5.76.
I expect to reach a full-sized over-weight position of Entercom of 20% of my portfolio sometime this month.
As always, do your own due diligence and make your own judgment about what reasonable assumptions might be for Entercom’s business.
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