07 Nov SOLD OUT: Babcock & Wilcox (NYSE:BW) @ 4.15/shr.
November 7, 2017 – I sold out of BW today, selling the remainder of the shares at USD $4.15/shr. The total loss on this investment is about 8.5% of the portfolio. While this investment was not a good one, some of the damage was mitigated by purchasing more at it’s low-point, and reducing some of the holding to make way for increased investments in other names which have performed well. As a result, the portfolio is -4.5% YTD versus 15+% for the S&P and 5% for the TSX. I decided to sell out of BW because I am still concerned that projects may suffer cost overruns, and more importantly, that BW will have to provide the client liquidated damages (paying a large penalty for each day any of the plants are not up and running). As well, I believe there are other options for the money…stay tuned for where I put it to work.