Citigroup (C): *Position Closed – Break-Even*

There’s a huge tsunami of consumer debt coming due and while no one seems to reference it much, it’s starting to freak me out. What happens when the stimulus runs out? What happens when the eviction moratorium ends and people get kicked out of their homes? What happens when the small businesses don’t pay their loans back?

And, most importantly, which sector’s going to get hit the hardest? The banks.

I definitely do want bank exposure, but over the past few weeks, I’ve realized I don’t care if I have a banking basket… why not just go with the Best-of-Breed, JP Morgan (JPM), and bail on Citigroup (C)?

So, when Citi hit my per-share cost on Friday, I decided it was time to let the entire position go, selling it for a teeny-tiny profit so small that it was basically break-even, and I’m happy to see it go at $51.96. From here on out, JP Morgan will represent the banking sector in my portfolio.

C closed the week at $52.12, up +0.3% from where I closed the position.

JP Morgan (JPM): Dividend-Reinvestment

Sure, dividends aren’t the most exciting thing in the world, however, over time, Dividend Reinvestment Programs (“DRiPs”) can substantially increase your returns and also lower your per-share cost.

For example, JP Morgan (JPM) paid out its dividend last week, lowering my per-share cost -0.91% from $89.88 to $89.06. At its current price point, JPM’s dividend yield is more than 3.75% a year which can be nice in a sector where stock prices may remain flat or down for significant periods of time.

GW Pharmaceuticals (GWPH): Profit-Taking

When GW Pharmaceuticals (GWPH) didn’t blow out their earnings report on Thursday night, I knew it was time to limit my exposure to this extremely volatile equity by using stop-loss limit orders to sell off the majority of my position.

GWPH lost support and dropped below $120 which triggered the sell order I had in place, filling at $119.23. The order reduced my per-share cost by -9.8% from $110.87 to $100.00.

While I do still believe in the long-term prospects of GW Pharma’s cannabis-based prescription pharmaceuticals, the stock’s volatility has made me adjust my strategy as the stock dropped to ~$68 during the March selloff, blowing right past the $90.14 mark that had served as support during 2018’s selloff. 

Accordingly, I’m now eyeing the $82.60 mark as my next buy target.

GWPH closed the week at $109.37, down -8.27% from where I sold Friday. 

Square (SQ): Profit-Taking

Square (SQ) made new all-time highs on Tuesday morning following analyst price target upgrades as high as $160 a share. Square’s explosive growth in 2020 has caused it to become the biggest position in my portfolio, outgrowing my allocation target of 6.67%.

This meant more profit-taking when Square crossed $136.30, locking in +111.55% in profits on shares I bought for $64.43 back on May 29, 2019. 

And, then, Square reported earnings after the market closed Tuesday evening…

Square’s report was so outstanding that the stock rocketed beyond $150, triggering another sell order I had in place on Wednesday to sell the remainder of the shares I bought on May 29, 2019 for $64.43 at $153.00, a profit of +137.47% and an average selling price for the week of $144.65.

Even with this week’s sale, Square still remains an overweight position in the portfolio. My next sell target is $157.30, near Square’s new-all-time high, and my buy target to add back to the position is $63.70.

SQ closed the week at $147.22, up +1.78% from my average selling price.