Today I finally managed to sell my position in Webco Industries. It was on my sell list for some time, but given the illiquid nature of the stock (before today only 100 shares had traded in more than a month time!) some patience was required. Someone put a nice bid in the market, and I decided to take advantage of the opportunity. When I bought my position the stock was trading at a 40% discount to NAV and I figured that upside was between 50% (looking at historical earnings power) and 100% (looking at liquidation value). Since then the stock has gained 60%, exiting net-net territory, while fundamentally nothing has changed. Perhaps the market is anticipating lower corporate taxes, and/or a better outlook for the steel business thanks to Trump, but I’m not going to bet on that. To me the stock seems pretty much fairly valued now:

Disclosure

Author has no position in Webco Industries anymore