I am closing out one of my long held infrastructure names;
Shaw Group (SGR). As always, I still like this stock for the long run but I already have a horde of infrastructure names, and the stock, much like
Chicago Bridge & Iron (CBI) is now in a poor technical condition; although the latter is showing some signs of life now. So I'm going to sell for now, since my position is so small, reduce the # of fund holdings by one, and revisit (both names) if they get back on the right path in terms of technical condition. I still like almost every name in this group on a fundamental basis.
"Value players" will take the exact opposite tact to me, and be buying these charts when I am selling, but I'd rather focus on stocks on clear upswings. It's just a trading style, and money can be made in various ways (buying CBI in the $38s would of proven to be very fruitful for value types) With SGR there is a lot of resistance in the mid $50s; for the technical condition to signal "clear sailing" we've have to trade back above both the 50 and 200 day moving averages which is going to take a lot of work. Again, "value investors" would treat this different and in fact be building positions down here, waiting patiently for the market to reward the inherent value of the stock - which could come in days, weeks, month, or a year. I don't know. But I'd rather have the money working for us somewhere or sitting in US pesos waiting the next opportunity.
Since the chart broke down I've held very little
Shaw Group (SGR) but am exiting the last measly 10 shares today. This was one of those "holding positions" (tiny positions waiting for a technical condition to improve) but the stock failed twice in April in attempted breakouts - hence, dead money. Below is a 6 month chart and obviously the stock has not been reacting very well, so I am exiting with a $4000 loss. I've held this name since fund inception, but don't have near term conviction to add more and the chart does not call for adding more. As I said above, I could see either of these names returning to the portfolio in the future.
No position
