like most of the upside has happened in three months. I intended to hold this until TCE hit $13,000 but with so much of the upside having occurred, I prefer to declare victory and move on to the next investment. We’re now pretty close to fair value for this business. The shares even trade at a premium to tangible book value for the first time in years. In summary, I’ve sold my entire position after earnings for roughly a double in three months.
When in doubt, I like to sit in cash and wait for layups. The math I’ve used above can relate to almost any commodity business and the nature of commodities lends itself to cycles that often overshoot to the downside. In fact, quite a few of the sectors that I track are likely to bottom in the near future. Stay tuned for more opportunities.
