I sold the remaining half of my position in Salem Communications today at $8.71/share after already selling the other half last month at $6.99/share. This concludes the most successful investment I have made since starting this blog, returning more than 200% (including dividends) from my $2.65 entry point in a bit more than a year time. I think that Salem Communications is still cheapish, but it’s getting close to being fairly valued. If I would have to make an estimate I’d say that the fair value of SALM is currently between $9 and $11/share. I’m potentially selling a bit prematurely, but I have to admit that I’m not that thrilled to own a company with a large amount of financial leverage and I also don’t have a lot of cash in my portfolio, so it’s time to make room for something cheaper.
No position in SALM anymore