Central Vermont Public Service (CV): Liquidating Position.

Part of the discipline of managing a portfolio is to constantly be looking for positions to sell. The best way to do this is to choose the position with the least upside or the one that you worry about losing money in.

As part of my weekly pruning of stocks I liquidated my entire position in Central Vermont Public Service (CV).  This is a utility in a low growth area trading at a p/e of 18 and with a dividend yield of just 4%.  I bought the stock last fall on a day with loud news.  The company had just had an infrastructure failure.  I bought the stock on after a 25% drop.    The stock has since recovered that loss.  It longer looks cheap. Why would I hold a stock that doesn't look cheap

Disclaimer:

I sold CV Friday.  I no longer have a position.

CV is an extremely illiquid low trading volume security. Trading this stock involves higher than normal transactions costs and market impact.

Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell.  I do not give investment advice.  Do your own research.  Do not rely on anything in this weblog to make investment decisions.  I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.