Fire The Losers?

Since we started this journal there have been relatively few occasions where we've sold a holding for poor results.  In a bull market, everyone's a genius, even me.  But May has not treated our portfolio kindly and it's appropriate to take stock.  Holdings that have lost more than 3% in the past five days are considered below.

1. SIVR (-7.9%):  Silver ETF.  Parabolic rise up, now a crash.  No matter, we don't trade precious metal holdings.

2. CEF (-6.6%):  Gold & silver closed end fund.  See above.

3. USAGX (-5.5%):  Miners mutual fund.  We will sell given a 13/34 week moving average cross, but we're not there yet.

4. EWZ (-4.6%):  Brazil equity ETF.  Inflation (real and anticipated) is the culprit.  There are reasons to bail now, but we're not a trader.  We like the Brazil story, but would be forced to sell at a weekly closing price below 68.86 or a 13/34 week moving average cross.  Not there yet.

5. BPT (-3.87%):  Alaskan oil trust.  BPT is a yield generator and as such we are not inclined to sell because of price moves.  The current dividend yield is 8.2% and the latest ex dividend date was April 13.

6. GDX (-3.3%):  Gold miner ETF.  We are on the hook to sell half at a weekly close below 57.75 or a 13/34 week moving average cross.

7. FSC (-3.2%):  Business development stock.  Another yield generator.  Current yield is 9.8%.  Short sellers have been targeting some Business Development companies according to this article.  Just what we need, something else to worry about.

8. KMR (-3.1%):  Oil and gas pipeline company.  Another yield generator, but you get paid in additional shares.  It's complicated but the dividend is approximately 6%.  The Master Limited Partnerships got hit today reportedly because of a change in favorable tax policy being floated by the Administration.  From Reuters-- The Obama administration is considering a plan to force more businesses to pay the corporate income tax, an industry group said, in an overhaul package that could be unveiled as early as this month.  Very preliminary-- hang tough for now.

9. CPL (-3.1%) Brazil electric utility.  Yield again.  This one's at 6.4% and management was given the thumbs up last month in this New York Times piece. 

I feel better now.  It's amazing what you can find out when you have to.