2019/02/16 | Update on positions KO en CLVS

On January 31st (see this blog post) we selected two stocks to buy which we would follow up live via the blog. Meanwhile we are two weeks further and it is time for an update.

Let’s start immediately with the graph of Coca Cola. After our entry price was hit, the price increase continued strongly…. until 14 February. On that day the company announced its quarterly results, which were not well received by investors. Sales in America were apparently lower and the share price closed 8.4% lower that day. As the price opened at 46.70, our market stoploss (46.88) took immediate effect and closed the position with a relatively small loss.

KO_chart

The protection of our risk capital should always come first. The recent price development of coca cola undoubtedly demonstrates the usefulness of risk and position management. Our 1% risk setup, combined with the rule that a new position may never exceed 25% of the total portfolio, have ensured that the loss in this situation has remained relatively small.

Entry @ 49.02$ – 116 shares

Exit @ 46.70$ – total loss per share = 2.32$

2.32 X 116 = 269,12$ or a loss of 1.07% on our total equity ($25,000)

In addition, if we had not set a hard stoploss for this position, the total loss based on Friday’s closing price would already be $438.48, which already corresponds to a loss percentage of 1.75% on the account!

About our second open position, Clovis Oncology we can be very brief. Since our purchase limit was reached (25.53$), the price has continued to evolve sideways.  Our hard stop loss remains unchanged at 21.72$. We are looking forward to February 26, 2019, when results will be announced.

CLVS_chart

 Kristoff

ChartMill.com