Taking a Portfolio Gain on LTM Shares

07/18/2013

Taking a Portfolio Gain on LTM Shares

By Paul Price

We sold our 71 share position in Life Time Fitness this morning for $56.11 per share due strictly to its valuation. We had purchased these shares for $42.36 five months ago and are satisfied with the quick 32.8% gain.

LTM demonstrated the power of buying good companies when their share prices are depressed. Here's the chart of LTM after its huge February sell-off. The chart: LTM as of Feb. 6, 2013.

In early February, the stock was trading for its lowest valuation since the depths of its 2010 extreme bear market bottom. LTM performed well for those who bought back then as well.

Today’s sale took place at a new peak price since 2007 when LTM was begging to be sold at $65.09 per share and 37x trailing earnings.

For now we will add the $3,983.81 to our cash reserves. LTM has been moved to our closed-out position list.

Disclosure: I sold some LTM shares in my personal account today as well.

Jul 18, 2013 12:00:00 AM | Value Investing

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Market Shadows Got High Market Shadows Got High By Paul Price Our Virtual Value Portfolio, that is. Details here ... Model Equities Portfolio The $100,000 stake we started with on Oct. 26, 2012, grew this past week. It hit a new closing high of $126,438 on Friday afternoon. Our 26.4% return since inception compared favorably to the performance of the S&P 500 ETF (SPY) which returned 21.5% over the same time period. We locked in a 5-month, 32.8% gain on Life Time Fitness (LTM) earlier in the week. That pushed our cash reserve up to $8,513 or 6.7% of the total account value. We...

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07/18/2013