By Paul Price of Market Shadows
Financial firm Calamos Asset Management (CLMS) has been a slight disappointment since we bought 277 shares on Oct. 26, 2012 for $10.80. We averaged down on 223 more shares @ $9.51 a month later. We’ve collected some nice dividends and seen plenty of insider buying since then.
The stock hasn’t done as much as we hoped. It has made a few dramatic surges only to retrace back to lower ground. EPS have not impressed during the bull market when assets under management (AUM) should have grown nicely.
Market Shadows did not cash out on the sharp rally last March. We won’t be fooled again. We sold our 500 share position for $11.92 this morning.
Our first buy netted a 10.37% profit while the oft-criticized ‘average down’ technique provided a healthier, 25.34% gain. The approximately 4% annual dividend we earned is not reflected in those figures.
$5,960 in net sales proceeds go into our cash reserve fund.
You can see all the closed-out and current holdings in our Virtual Value Fund by clicking here.
If all our disappointments end as well as this one, we will be quite satisfied.
