Our second recommendation is a partial sale of a previous idea.
Sell Half: Shopify (SHOP)
From Cabot Growth Investor
Updated from Wall Street’s Best Investments 790, February 15, 2017
SELL HALF, HOLD THE REST. Shopify (SHOP) has fallen hard his week after the same short-selling outfit that knocked it back in September spoke up again, this time saying that Facebook’s issues could hurt Shopify’s customer acquisition efforts.
As was the case last year, we doubt that this company’s business is going to slow; if anything, we think results can easily top expectations as the small business segment of the economy thrives. That said, there’s no doubt the selling pressures have been intense, with SHOP thrusting below its 50-day line in recent days after a big run since the start of the year.
Given that we recently bought a chunk at higher prices, we’re going to cut back tonight, selling half of our total position. The stock’s major trend is still up, but the recent selling means shares likely need some time (and a healthy market) before getting going.
Michael Cintolo, Cabot Growth Investor, www.cabotwealth.com, 978-745-5532, March 28, 2018