DARK HORSE HEDGE – Funeral For a Friend, TEO
By Scott Brown at Sabrient, Ilene at Phil’s Stock World
The roses in the window box
Have tilted to one side
Everything about the house
was born to grow and die
You’re a bluebird on a telegraph line
I hope your happy now
Well if the winds of change come down your way girl
You’ll make it back somehow
Funeral for a friend – Elton John
This song doesn’t say a lot in words but touches all of us in many ways. I [Scott] lost my grandmother this past weekend at 91. She was not cheated in years for sure but lived the last 22 years without her best friend, my grandfather, who was a Marine in WWII. He waited 22 long years but she has “made it back somehow”……”I hope your happy now”.
But this is an investment article, so what does all of this have to do with Dark Horse Hedge and TEO? We recommended a purchase of Telecom Argentina (TEO) on July 1, 2010 at $16.38 and have maintained that position as the stock has climbed steadily to close yesterday at $22.78.
This morning TEO has traded as high as $27.15 on the news of the death of political heavyweight and former President, Nestor Kirchner, who is now out of the 2011 presidential race. Kirchner was seen as unfriendly towards the markets.
Sincerely, for Argentina and from a market perspective there is nothing better than knowing that Kirchner will be out of the presidential race of next year. For years his confrontational, resentful style towards investors, companies and bond holdouts deprived Argentina of much-needed capital," said Roberto Sanchez-Dahl, who oversees $1.1 billion in emerging market debt for Pittsburgh-based Federated Investment Management. See Argentine assets rise on death of ex-President Kirchner, Reuters.
TEO was one of the first stocks recommended in the Dark Horse Hedge virtual portfolio and has been like a friend yielding us nearly 50% profit in almost 4 months. The momentum players have pushed the stock around today and while we continue to like TEO for the long term, we feel that it is time to play “Funeral for a Friend,” take advantage of the momentum to take our profits. Perhaps the winds of change will blow our way again and TEO will make it back to the DHH virtual portfolio somehow.
SELL TEO, at the market, Wednesday October 27, 2010.
