Square (SQ): Profit-Taking

With a market this frothy, it was time to take profits in my swollen position in Square (SQ) when it hit $262.53 on Friday. The sale locked in +32.70% in gains on shares I bought literally just a month ago on March 9 for $197.83. The profits reduced my per-share “cost” -11.09% from -$131.60 to -$146.20. Square is now the biggest lifetime profit-earner in the entire portfolio with Boeing (BA) coming in second place more than -25% behind!

Even after the sale, Square still exceeds the 7.14% allocation target for this portfolio, ringing in at 7.873%. However, I continue to stay overweight in Square for two reasons: (1) this company is the definition of super-volatile high-growth and I believe it can go much higher than here, and (2) with a cash stockpile of more than 40%, I’d like to maintain more exposure to the markets.

From here, my next sell target is under its $300 price target, and my next buy target is $202.40, near the bottom of its most recent selloff.

SQ closed the week at $261.65, down -0.34% from where I sold.