Closing 5 ideas

Earning myself 4 cups of coffee

I am taking several off the list, first one being Angiodynamics (ANGO) written up here. It jumped in the past week on a slightly improved forecast to a high of $13. I wrote it up at $6.9. I think fair value is around $12-15 or so, so no longer all that interesting. A ~75% profit in only a few months.

Also closing Alliance Pharma (APH) written up here in August last year, which is being taken out generating a 65% return in ~4 months. I must admit I sold this one in the high 40’s. I thought that a buyout would happen somewhere in the 50’s so didn’t find it as attractive anymore, and was hoping I could get back in the 30’s again. Not sure if that was a good decision. I did speculate that a buyout was imminent, so I probably should have held it for another 3-6 months despite the less attractive valuation. It is kind of annoying when I underperform against my own blog in an idea.

I took down paywalls on both ANGO and APH. I will also close Genomma Lab (LABB), JNBY (3306) and Goldlion holdings (0533). I forgot I even had Goldlion on my list, but it is getting bought out for HK$1.53. I sold it a long time ago and it has made a profit but underperformed the S&P 500.

LABB and 3306 have outperformed. I announced I would double down on both here in December 2023 and here in November 2022, almost marking the bottom on both stocks. Showing once again that if you do value investing right, selling your losers and buying winners is not a good strategy. Now I am closing them because valuation is no longer all that attractive. Not terrible medium term holds by all means, but just don’t see that much upside unless the market suddenly starts pricing in a lot of multiyear double digit growth. I will keep them on my watch list and if they get cheap again activate them later on.