On Sep 16, 2015, we sold NPK (National Presto) stock at $84/share. This sale resulted in 43.26% total return. The NPK stock predates the start of the Value Stock Guide service and therefore has been one of the longer held stock for us, having initially purchased on Sep 30, 2009.
Late last year the stock had declined to a low in 50s. We added to our position at $57.20/share. As the stock regained its rightful place in 80s, we decided to exit the position so we can free up some capital to take advantage of the minor market crisis that we have seen in the last few months. Please note that this transaction does not reflect on the valuation of NPK in my opinion, but rather is a relative valuation trade.
The average cost of the stock was $79.88/share. About $31/share in total return came from the dividends the company has paid in the last 6 years we have held the stock.
Listen to this Top 15 Investing Podcast on iTunes
About a week ago, I participated in the podcast by Investor in the Family. Brian Bain, the man behind this podcast and the website with the same name is a long term member of the Value Stock Guide Premium service and he invited me to talk about my investment philosophy and process on his podcast.
This podcast is available on iTunes below.
Please check it out and subscribe to this podcast as I know Brian has many extraordinary guests lined up for the future podcasts. Past episodes are exceptional as well. You are invited to share your thoughts on the podcast and leave a rating on iTunes and help him grow this and bring many more real world investors to you (as opposed to talking heads on TV).
Brief Word on the Recent Market Volatility
I get a feel for what my readers are thinking based on the emails I get from them. This year has been very volatile in the market, and specifically the small cap stocks have underperformed for the last year and half. It is great to see that the tenor of most of the emails I get has been so far inquiring about where new opportunities may lie. Yes, there has been some concern as can be expected but majority that have interacted with me have shown a solid long term orientation and an understanding that market ups and downs are normal part of the investment process.
I just want to reiterate that short term market volatility is not a judgment on real values. We do not invest based on consensus opinions and neither should you. Trust your own due diligence.