April 23

Oil Sector Reduction – Chevron Sell


This content was saved from the old investmenthunting.com website, in case anyone was still looking for it (with the help of archive.org)

Chevron stock sell. Looking back at 2015, I overbought stocks in the energy sector. This is not an epiphany, I’ve written about my overexposure a few times in the past. I’ve also been reducing my allocation, but only when I can do so at a breakeven. To learn about my overexposure checkout this post, My Portfolio is Leaking Oil.

I sold 35 shares of Chevron at $102.18 a share, totaling $3,576.39. I was able to make a very small profit of $117.81. The Chevron sale reduces my overall Chevron share total down to 31 shares at a cost basis of $98.82.

Chevron Sell, ??? Buy

Now that I’ve freed up $3,500 dollars, I’m back in the buying mode. Earlier this month I posted my April Watch List. I may buy a stock from this list, but, I ‘m also looking at few stocks not on the list. Other stocks not on the list that I’m considering are Visa, Mastercard, and the Potash Corporation of Saskatchewan. Other candidates from my watch list are: Wells Fargo Bank, U.S. Bank, General Dynamics, Qualcomm, Johnson Controls, American Express, Discover Financial Services, Ameriprise, Union Pacific, CSX, T. Rowe Price, and Principle Financial Group.

I’m still long Chevron, but I saw an opportunity to cut my energy sector allocation while still turning a slight profit. I plan on holding my remaining shares. The energy sector will recover or at least find a new normal. When this happens, I see Chevron as one of the companies to survive and thrive. But, being over-allocated is a place I don’t like being in, thus this stock sell. I chose to sell this stock because it’s one of the few oil stocks I own that is not underwater.

What do you think of my Chevron stock sell? What would you do with $3,500? Which stock would you buy?


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