Hi Sean,
At the moment, I don't plan to lighten up as I tend to let my winners run. Additionally, I see too many tailwinds over the next 5 years that could potentially return multiples of its current price.
(Am a bit wary, however, about their inability to deliver a consistent operating profit.)
For context, I established a pretty healthy, initial position at $86 about a year ago and then I'm guessing I doubled it or so since that time. In any case, my average cost per share now is $121. Not sure I would add here, as I reckon it is at or close to fair value. It's pretty volatile too, so shares MAY be had at a meaningful discount from today's price.
Recently, I've added pretty aggressively to my FIX position as I don't believe it has achieved full value. Similarly, I began dipping my toe in about a year ago, making buys throughout the year, but then from November through early January I doubled my stake. It's a tough business, with grocery-store-like margins but the demand for their product/services is impressive. Plus it seems to be run by rational, competent management, with significant experience/expertise. Take a listen to their last conference call.
Doubt it'll stay a "bargain" for long though as evidenced by its 13%+ jump over the last 30 days.
Hope that helps,
Sisyphus |
