Coinbase (COIN): Profit-Taking

Coinbase (COIN) gapped up on Monday morning along with Bitcoin hitting new all-time highs before pulling back sharply. Fortunately, the movement wasn’t quick enough and my next sell order filled at $270.00, selling 16.67% of the allocation and finally weighting COIN correctly in its speculative basket.

The sale locked in +36.00% in gains on shares I bought for $172.80 on January 24, 2022 and lowered my per-share cost -4.22% from $222.95 to $213.54. From here, my next sell target is $293.89, just under a past point of resistance, and my next buy target is $120.31, slightly above the lows Coinbase saw less than two months ago.

COIN closed the week at $242.36, down -10.24% from where I took profits Monday.

Dow (DOW): Dividend Reinvestment

Dow (DOW) paid out its ample quarterly dividend on Monday which, after reinvesting, raised my per-share “cost” +6.25% from -$0.32 to -$0.318 (a negative per-share cost indicates all capital has been removed in addition to $0.318 per share added to the portfolio’s bottom line in addition to each share’s current value).

Why did my cost basis raise after receiving a dividend?

Whenever all capital has been removed from a position, a dividend reinvestment adds more shares to the position, not more profits. So, the profit in the position is divided by more shares and raises the per-share cost even though the value of the entire position is also increased by the new shares from the dividend.

Dow’s been slowly rallying higher and higher since October, but since I took all of my investing capital out a long time ago and it pays out 4.876% in dividends annually at its current prices, I have no problem hanging on for the long term. My next sell target is $59.93, just below a past point of resistance, and my next buy target is $48.59, above a past point of support.

Skyworks Solutions (SWKS): Dividend Reinvestment

Skyworks Solutions (SWKS) paid out its quarterly dividend on Tuesday which, after reinvesting, raised my per-share “cost” +0.64% from -$34.27 to -$34.05 (a negative per-share cost indicates all capital has been removed in addition to $34.05 per share added to the portfolio’s bottom line in addition to each share’s current value).

Why did my cost basis raise after receiving a dividend?

Whenever all capital has been removed from a position, a dividend reinvestment adds more shares to the position, not more profits. So, the profit in the position is divided by more shares and raises the per-share cost even though the value of the entire position is also increased by the new shares from the dividend.

Skyworks has been trading in a range since before the start of the year, but I have no interest in making any moves until it breaks out or breaks down from here. My next buy target is $85.58, slightly above the lows SWKS saw in November 2023, and my next sell target is $123.53, slightly below the highs SWKS saw in 2023.

Zoetis (ZTS): Dividend Reinvestment

Somehow, I overlooked that Zoetis (ZTS) paid out its quarterly dividend last week on Monday, March 4, which after reinvestment, lowered my cost basis -0.23% from $129.45 to $129.15.

Zoetis has taken an absolute pounding over the last few weeks, so my next buy target is much lower than here, down at $151.24, slightly above the low ZTS saw at the beginning of November 2023.

Since this position is still quite a bit smaller than I prefer, I do have a profit-taking price target, but not unless Zoetis makes a stab at its all-time with my target at $246.65, slightly below that high.