Take Some Profits: Sell Some of Your Stock Positions

Recently, the stock market has been trading at crazy levels, soaring  higher and higher day by  day. So far my personal stock picks have been solid as my account has surged over 36% in the past month and a half. The question is now when to sell? Now after last weeks surge, some of my picks have surpassed their 12-month target so I am selling postitions and I wanted to update you on what I am selling and why.

Foster Wheeler (FWLT) Bought on 7/16/2009 at $19.75 now at $34.26, Total Return: ↑75% HOLD

HOLD. Foster Wheeler has surged a lot recently, up 75% in two months. Foster Wheeler is a strong global brand in a growing industry. This stock however is no longer undervalued and has surpassed my 12-month expectations in such a short period of time. I would say take your profits and move on. Here is the link to read the original research report.

U.S. Corporation (USG) Bought on 7/23/2009 at $12.03 now at $17.77, Total Return: ↑49% HOLD

Hold. This stock soared big time last week and now it is up over 49%. I have concerns that it might get shorted down in the upcoming weeks and that is why I am selling half of my position. You can read more into detail on why I am selling half my USG Position. Long-term the potential is still there. As the housing market continues to recover within the next few years more and more new projects will start up offering new business which USG will feed off of. Here is the link to read the original research report.

Baidu (BIDU) Short on 7/30/2009 at $351.18 now at $390.25, Total Return: ↓9% SELL

Stop Shorting. I got out of this stock completely. No longer shorting it yet not recommending it as a buy either. You can read more about why to stop shorting it in my recent article. It was my first failed stock pick of the year and for some reason I don’t understand why it continues to go up when all the technical and fundamental indicators point differently. Instead of risking more potential losses I am pulling the plug. Here is the link to read the original research report.

Gamestop (GME) Bought on 8/4/2009 at $22.86 now at $26.79, Total Return: ↑18% BUY

Buy. This stock continues to steadily go up backed by strong company fundamentals. Long-term though it is still a great stock pick. It is still overlooked by most invesotrs. The reason the video game industry has been struggling is not because of the recession but because no good video game titles have been released. Not one top title has come out within a year. Madden kicked it off and now the titles will be pouring out and gamers will be rushing to the stores. Backing this up the company has strong financials, management, and a healthy balance sheet which all bodes well. Stay in or buy in which ever fits you. Here is the link to read the original research report.