Friday, February 18, 2011

Sold Some Genzyme and Back in Big Lots

I sold some of my holdings in Genzyme (Ticker: GENZ) today at $75.36. I sold the 1X and 0.7X lots, which were purchased on 02/14/11 generating a total return of 4.53% over a 5 day period (232.97% annualized). I sold because I wanted to free up some cash so I can get back into Big Lots (Ticker: BIG), which I did today at $41.60. It’s a relatively small position in Big Lots, but I may add over time as cash becomes available. There’s a high probability that Big Lots will be acquired by private equity.

Another reason I sold those particular lots in Genzyme was the fact that the shares were purchased on margin. There was no benefit in holding until the closing as the margin interest would eat up the rest of the potential gains. When you use margin, time is money.


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