Jim’s view of the balance of risks in one of our investments has changed. It’s time to exit.
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We’ve held Nomad Foods in our portfolio for a few years and it’s one of the best-positioned food stocks on the market. Being a leading frozen food producer, this sector has proven to be resilient during the pandemic. Nomad reported excellent financial results this morning and shares have risen to the point of being overbought, so let’s book gains on this position now.
After weighing many risks and rewards, we conclude that fourteen months into a challenging gold stock correction, it makes sense to take profits on one of our best-performing positions. Since EDVMF’s gains are currently ten times the GDX gold index return, let’s take profits now on this position.
With global demand for palladium and nickel going up, Norilsk has seen a significant increase in profitabliliy. We presently have a substantial double digit gain with this play. The metals that Norilsk is mining are sensitive to economic downturns, so let’s take advantage of this 58% gain now.
Rocket has grabbed the attention of the Reddit crowd and reported good fourth quarter results on Feb. 25. But the report does not justify the stock trading near $39 in afternoon trading, soon ahead of the market close. Reddit-fueled stock surges rarely last, so we recommend taking a phenomenal 88% gain in five months.
In light of the volatile nature of the market, it’s time to sell five positions in the portfolio as they are vulnerable to much lower prices in the months ahead.
In the last lifetime members-only briefing held in January, Jim discussed the economic implications of a Bernie Sanders victory on the healthcare industry. The stock recommendations that Dan provided on the call are up substantially so we recommend locking in profits on the short positions before a market bounce as the Fed will likely intervene. Receiving extra recommendations is an exclusive bonus of being a lifetime member so congratulations on your gains!
