Sell Half, Hold The Rest— ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA)
From Cabot Growth Investor
Updated from Investment Digest 769, May 20, 2015
Sell half, hold the rest, of ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA). Most growth stocks have been battered during the past two weeks, and ULTA has gone along for the ride—shares busted through major support before finding buyers in the 150 area. Chart-wise, there is lots of support in this area (ULTA built a tight base last spring between 150 and 160), and it’s likely the firm’s upcoming quarterly report (probably in early March; no set date yet) will confirm that the major growth story is intact.
That said, we also don’t want to ignore the action of the stock. Thus, we’ll split the difference—we advise booking partial profits by selling half your shares, but we’re aiming to hold the rest through earnings, giving them more room to begin rebuilding a new launching pad. Sell half, hold the rest.
Michael Cintolo, Cabot Growth Investor, www.cabot.net, 978-745-5532, February 17, 2016