It has been several weeks since I last discussed an actual holding of mine on this blog. In fact, almost a month has passed since I reviewed Covance (CVD) on this blog. Going alphabetically (by symbol) through my list of 15 holdings, I am now up to U.S. Global Investors (GROW).
Let's take a closer look at GROW and I will show you why it still makes sense for my portfolio and whether it still represents an "investable" company.
U.S. GLOBAL INVESTORS (GROW) IS RATED A HOLD
Currently I own 245 shares of U.S. Global Investors (GROW) that were purchased October 10, 2007, at a cost basis of $21.27. GROW closed 11/2/07 at a price of $22.30, giving me an unrealized gain of $1.03 or 4.8% since my purchase.
When would I sell the stock next?
Assuming the stock continued to appreciate in price, my first targeted sale on the upside is at a 30% appreciation point. For GROW and my purchase, this represents a price of 1.30 x $21.27 = $27.65. At that point I would plan on selling 1/7th or 245/7 = 35 shares. If the stock should decline sufficiently, I shall sell all of my shares. Since I haven't sold the stock yet at a gain, the price on the downside remains at an 8% loss limit, or .92 x $21.27 = $19.57.
What exactly does this company do?
According to the Yahoo "Profile" on GROW, the company
"...through its wholly owned subsidiaries, provides mutual fund management services. It provides investment advisory services to institutions and individuals; transfer agency and record keeping services; mailing services; and distribution services to mutual funds advised by the company.
