Monday, December 27, 2010

Selling Some BAM

I sold a portion of my Brookfield Asset Management (BAM) position today.
There are several reasons.
First of all, stock is up a lot. Stock shot up more than 50% since it's yearly bottom in July.
Second, I'm starting to dislike BAM. Company missed last two quarters, it trades at almost 30 future PE and projected PEG is way over 2. I'm going to do more research and determine if I want to get rid of position completely. But reducing it now looks like a good idea.
Third. We are in a strong year end window dressing mode. It's a good time to sell.
Last but not least. This portion was bought long time ago at higher price. Selling it actually creates a tax loss, which isn't that bad to reduce tax profit for the year.

Full disclosure: at the time of publication author had a long position in BAM. Positions can change any time.

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