Bookkeeping: Cutting Intrepid Potash (IPI) on Quick 25% Gain
Posted on Wednesday, June 11th, 2008 | In Current Market News, Stocks to WatchI have to say this stock surpassed my expectations – after reviewing Interpid Potash’s quarter, I had a general target of $3 EPS for 2008 (analysts at $2.18) x 20 PE ratio = $60 price target, when I added this stock a week ago Monday [Jun 2: Beginning Starter Position in Intrepid Potash]. I bought in the $48s and was hoping for $60 by sometime later in the year… that would of returned 25%. Well we got this in a week and a half, so I am booking profits and saying “wow”. (I didn’t get the $60, but sold around $59)
Can it keep going up? Certainly! Low share counts in recent IPOs allow for wild swings, but (a) I got my 6 month target in a week and a half and (b) I prefer the valuation in Mosaic so I’ll just add more exposure there if need be, as my target for Mosaic in terms of price per share is much higher.
I have brought Intrepid Potash (IPI) back down to a very minor stake from 1.8% to 0.25%. We’ll look to add shares on a pullback, and say thank you for for this nice quick gain.
Long Mosaic, Intrepid Potash in fund; long Mosaic in personal account
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 About Trader Mark (http://fundmyfund.blogspot.com)
Mark is a self taught private investor, fascinated by the market since an early age, discovering mutual funds as a teenager in the 80s, and then moving to equities by the mid 90s. His equity focus is identifying secular growth trends, and the companies most likely to benefit from these macro trends. Stocks are identified through fundamental analysis, although basic technical analysis is used in determining entry and exit points. With a degree in Economics from the University of Michigan, a broader understanding of the economy as a whole, along with interpreting investor psychology is also a major interest for Mark. His career background has focused on financial analysis in corporate America. |
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