In November I sold Disney, Under Armor, KMI and GE.
I sold all my Disney stock (DIS) for several reasons: poor performance; DIS became more political; failing revenues and higher costs for the ESPN franchise; and overall earnings decrease to name a few. I made less than 1% on the diz.
UA has been on my hit list since I bought it earlier this year. After Stephen Curry dissed President Trump, I lost all faith in Curry and Under Armor. Plus there’s an industry-wide slump. So I sold UA stock completely. It is dead money.
(Oct 31: Under Armour’s stock plunges as results hit by Nike, Adidas)
KMI has been my worst performer of the lot. Full Disclosure: I still hold a substantial number of Kinder Morgan Inc. As an overall strategy to sell some of my energy sector poor performers, I have elected to sell some of my KMI holdings at a large loss. However I am holding nearly 70% of my position in KMI. Why am I holding? Of the analysts surveyed by Reuters, 58% rated Kinder Morgan a “buy,” while 42% rated the stock a “hold.” KMI’s mean price target of $23.78 implies an upside of 29% from its current price of $18.42.
What could go wrong with the dividend (AGAIN)? From a recent headline: The pipeline giant expects to give investors a massive pay raise over the next three years if things go according to plan.
GE stock performance has been dismal since Jack Welch left the company in 2001.
GE has been a larger part of my portfolio since the late 1990’s. In 2001 Jack stepped down after running a fantastic blue chip company. With his assurances that the new guy was good, in the Mid 2000’s I GE a larger portion. This decision was also due to the poor stock performance not matching up to earnings and news about the company at the time.
Turns out the new guy was not good for GE. He was perhaps the worst of CEO on Donald Trump’s advisory council. Then instead of keeping a seat at the advisory board table, he steps down. Not a smart move. A recent Forbes article declared, “As Immelt Leaves GE, Investors and Employees have little to Cheer,” ‘nuf said.
And now I am suffering another dividend cut, the last one was in 2009!
Early November, I sold approximately 25% of my holdings in GE.
What about the other 75%? I’m holding out for the new guy, John Flannery. I like what he has already done with GE in cutting costs and focusing on the 3 key areas of GE: aviation; power generation; and healthcare. I will give it another 3 years and re evaluate owning GE.