Doing the unthinkable I am selling half of Indian bank HDFC (HDB) as the stock has gone on a very nice run of late. Then again, as I wind up my arm to throw a dart at the stock section of the Wall Street Journal, what hasn't? When HDB broke out over the 50 day on March 2nd, we added a batch of allocation, so I am essentially taking that allocation off the table, 5 weeks later.
Normally there would be a good chance the stock comes in and falls to some longer term moving average where we could buy back our stake. However the past 6-7 weeks stocks have run up, and simply gone sideways as they wait to go on a new breakout. Until the market proves otherwise, this sale will be foolish... as is almost any sale of equity. That said a part of me wants to sell all my positions and go to cash and no one can find a reason for stocks to fall.
I don't even bother to talk about valuations anymore since the market could care less - 1999 style - but this bank is sporting a lovely mid 30s forward PE ratio.
Long HDFC Bank in fund; no personal position