Stock returned 20% CAGR over the last 5 years, has low correlation with the rest of my holdings, trades at an incredible 6 PE: checks all the boxes except: been going nowhere since I bought it a few weeks back. I'd hate selling a 6 PE stock with stellar track record but it's costing me margin interest day after day after day with ZERO price appreciation: keeps trading around my cost. Mostly couple of bucks below (for a $225 stock). Irritates the heck out of me. Views y'all? Keep it? Junk it?
ABG has the low PE and aprox the 20% CAGR It also has 30% drawdown every so often and dropped over 60% during the last meltdown. Protect your capital!!
"I tried. Freaking Nikkei has been stuck at 32,500 for weeks. Going nowhere since June. Better stuff elsewhere." You seem to have answered your own question.
You're looking at long term fundamentals but looking for a return within weeks. The expectations seem to be the problem. I like long term, good deals on stocks, but I also recognize that the reason they're such a good deal in the first place is that for some reason the market doesn't like them. It might take a year or two to turn opinions around and see the price go up.
Don't think that is his problem. This is his problem: Bought with borrowed money, no staying power. For me if I am that anxious, I get out.
ABG indeed. Keeping it. I can't sell a nice business with a PE of 6. Makes no sense. It'll wake up eventually.