How to Exit Building Wealth Positions

By Bonner & Partners on July 2, 2015

Since we’ll no longer be covering the Building Wealth portfolio, we recommend that you close your positions. (You can get step-by-step instructions in executing a sell order with your broker right here.)

First up is Jack Henry & Associates (NASDAQ:JKHY). We first recommended this company back in May 2014. In that issue, we stated that “it is a business that continues to gush more cash for its shareholders year after year.” The company was founded in 1976 and now provides computer-based solutions for 12,000 financial institutions and businesses.

Since we’ve been in this positon, we’ve collected $1.16 in dividends. Shares are currently trading around $64.89, meaning we’re sitting on a capital gain of nearly 18%, as well.

We recommended these shares to Investor Network readers later that month. This means we’ll continue to track these shares in the Investor Network portfolio.

Action to take: Hold your shares of Jack Henry & Associates (NASDAQ:JKHY) as they appear also in the Investor Network portfolio.

Last September, we recommended shares of Southern Copper (NYSE:SCCO). After following the copper story for a while, a few catalysts seemed to be signaling a buy. The company was continuing its expansion, making it the third-largest copper producer in the world.

That, combined with an increase in insider buying, was a good sign, despite the soft copper market. The price of copper, however, has continued to fall.

Action to take: Sell your shares of Southern Copper (NYSE:SCCO) for a loss of about 8%. 

Next up is another resource play. In November, we recommended that you buy shares of Randgold Resources (NASDAQ:GOLD). The price of gold had plummeted over the last few years from $1,900 per ounce in 2011 to under $1,200. So we wanted to grab some gold on the cheap with this play.

Randgold was the obvious choice, having been the best-performing stock in the Standard & Poor’s/TSX Global Gold Sector Index of 40 miners. That being said, the company stock still tracks very closely with the spot price of gold, which is about the same as it was at the time we recommended this position.

Action to take: Sell your shares of Randgold Resources (NASDAQ:GOLD) for a gain of about 4.4%.

Closing out 2014, we recommended yet another resource play; this time it was oil. Oil was on its way down to what would be its low in January, and OPEC has said it wouldn’t raise prices. The situation was unfolding just as it did in the ’80s.

Exxon Mobil (NYSE:XOM) was the logical play. It had proved that it not only could survive in a depressed oil environment, but that it would thrive.

The dip in March, however, is taking its toll on the industry.

Action to take: Sell your shares of Exxon Mobil (NYSE:XOM) for a loss of 7%.

In February, we recommended that you grab shares of yet another resources leader. This time, we looked at methanol. It’s the simplest of all alcohols and is in everything, from plastics to wood products to fuel. As we started to see more and more used in the energy space, it made sense to pick up shares of the industry leader, Methanex (NASDAQ:MEOH).

Since then, we’ve collected $0.53 per share in dividends and around $4.60 in capital gains. We recommend you sell your shares for a gain of around 10%.

Action to take: Sell your shares of Methanex (NASDAQ:MEOH) for a gain of about 10%. 

Our May recommendation of Entravision Communications (NYSE:EVC) shares are on fire. We noted that next year’s coming presidential election was sure to uncover spending and fundraising like the world has never seen. Entravision owns 58 TV stations and 49 radio stations that cater specifically to the Hispanic community, an important segment of the voting population.

In the last 41 days we’ve seen shares skyrocket. Action to take: Sell your shares of Entravision Communications (NYSE:EVC) for a gain of nearly 24%.

Most recently we recommended NVIDIA (NASDAQ:NVDA). NVIDIA has always been at the forefront of computing. And the company has been trading more cheaply than its competitors in the field. The company may be poised to explode in a few years, but in the last month, we’ve seen the shares slide.

Action to take: Sell your shares of NVIDIA (NASDAQ:NVDA) for a loss of about 8%.

We had also recommended ICICI Bank (NYSE:IBN) and Pentair (NYSE:PNR). Neither company ever fell into our buy range. If you were watching them, we no longer have open buy recommendations on either position.

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