Sell Notification, Purchase Notification

Sell Notice - Netflix NTFX
I sold approximately 40% of my Netflix (NFLX) shares. The main reason is Netflix ballooned to 30% of my entire portfolio. It's a nice problem to have but a problem none the less. Netflix has been my top money maker especially due to an increase of my holdings when it bottom in the teens a few years ago. This is the second time I've shaved back my Netflix on the size in a year.

With the price reaching into the $100-110 range, I decided it was time to kill to birds with one stone. As I stated before, I'm cutting back primarily because NFLX ran up to inflate my holds (a good thing). However I had some valuations concerns and decided to take some of the gains off the table and look for new ideas to invest in. I have no doubt Netflix will continue to perform well but I'm just cutting my exposure while looking to put that capital gains right back to work.

One of the philosophies of the Monkey Portfolio is to reinvest in all manners. I reinvest dividends. I also reinvest shares sold to buy in other business. Last year after I sold my first installment of NFLX I put it to work in MSM Direct and Dolby Labs. Dolby has continued to beat the market.

Once again, that philosophy applies. The net gain from Netflix will be used to either expand current holdings or invested in new companies. A full position is a position in my portfolio that I consider the max I'll own of a stock. I do make exceptions and own more or less. Anyway, I've gained enough from the Netflix sale to fund three complete positions and a third of another.

Purchase Notification - Seaspan Corporation (SSW)
I give my reasons in my results of review of my holdings. I continue to keep buy until I reach my predetermined amount. Also I'm making it my first holding in my new IRA account.

Even though they are separate accounts, I'm counting them as one toward my new Texas Liberty Cougar Fund. More on the Texas Liberty Cougar Fund on the next post.

More on the NFLX sale, Two New Buys

I unloaded about 35% of my Netflix (NFLX) holdings for two primary reasons.

The first is valuation concerns. I thought NFLX took a nice run and reached a high point for now. If the share price becomes attractive again then I'd think about buying back in.

NFLX ballooned up and comprised 26% of my portfolio. The other reason I sold was to bring that number down and rebalance some.

I also plan on using the NFLX proceeds to pay down my margin loan and start building out new positions. I'll reveal my next two stocks further down.

I have no problem with a stock taking up that much room in my investment account. However, coupling the high percentage with the run up in price, I decided to lighten up the holding.

In buy news, I'm currently in accumulation mode on two new stocks. I'm buying a full position on John Wiley & Sons (JW A) class A shares. I'm also opening a position on TeraData Corp (TDC) with intent to fill a full position. Currently I own 25% of what I intend to own in both shares.

Out of respect for the Motley Fool's product and my subscription to it, I won't go into details on reasons to buy the new stocks. I will in future writings but they are recent recommendations and don't feel right revealing information others and I paid for.

As usual, I write this blog as a tool for me to keep track of my stock ideas, buys, sells and reasons behind it all. I in no way endorse any security, stock, bond or any other financial instrument. Nor do I endorse anything that I might mention in this blog that I cite from the Motley Fool or any other publication. Each person's situation is different than mine. Therefore, you must do your own due diligence and consult with a financial advisor before you follow any moves announced by me on this blog.

When I'm off from work this week, I'll reveal all my stocks and their weighted position they hold plus what percentage of a full position they hold.