Trade Alert: Taking profits on 3 stocks (one full cover, two trims)
Well, it looks like SiriusXM is going to pay a few billion bucks for Pandora P. And get this, the purchase price could be around half the price at which we shorted P back a couple years ago. Given that P was a short hedge to all of our App Revolution longs including Facebook, Google, Amazon and that all of those stocks have gone through the roof while Pandora has collapsed and is throwing in the towel here at a fraction of a price that most of their shareholders paid for their stock over the years — and the fact that we’ve locked in profits on this short at lower prices while we had the chance too…well, let’s just declare victory on this short hedge and move on. I’m covering my P short.
I’m also going to sell 10% of my Sony SNE here around $57, up from the mid-teens where we bought it a few years ago. I’ve taken profits a couple times along the way before here and am just doing the usual prudent thing here, following our playbook.
I’m also going to sell about 10% of my Palo Alto Networks PANW. The stock’s been on a tear for the last few months as I’d expected it might and again, it’s just prudent to lock in some profits. This is the first time I’m trimming PANW with it up about 50% here from where we bought it a year ago.