Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice ! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decisions based on information on this website.
A few moments ago I sold my 140 shares of Kinetic Concepts (KCI) at $53.21. Because of a 'trade' in my account, these shares are carried with a purchase dat of 10/23/07 and a cost basis of $58.05. Thus, with the stock trading at $53.21, this represented a loss of $(4.84) or (8.3)% since the recorded purchase. The 8% level is my loss limit for stocks after an initial purchase.
With the stock declining to this level, I sold my shares--all of them--and shall 'sit on my hands' with the proceeds. I use these sales on 'bad news' as a signal to be cautious in my own portfolio. I shall be waiting for one of my other positions to hit a sale point on a gain to give me the 'green light' to make an addition to my portfolio.
What caused this drop? Over the short-term, there was a Barron's article this weekend about whether KCI's patents would hold up and whether thus their 'moat' would be safe.
However the latest quarter result was solid. The company beat expectations on earnings and revenue. They also went ahead and raised guidance . A glance at the Morningstar.com "5-Yr Restated" financials looks perfect. And the 'point & figure' chart on KCI from StockCharts.com shows that while the stock is under recent pressure, the price movements have been quite wide in this stock and it still appears to be above support levels.
However, since I am selling my own shares, I need to reduce my rating on this stock even though the story, except for the recent questions about patents, really appears intact.
KINETIC CONCEPTS (KCI) IS RATED A HOLD
Thanks so much for stopping by and visiting! If you have any comments or questions, please feel free to leave them on the blog or email me at bobsadviceforstocks@lycos.com.
Bob
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$55.14 (12/10/07)
