Sell Half: Momo (MOMO)
From: Cabot Emerging Markets Investor
Updated from Wall Street’s Best Investments 786, October 19, 2016
Momo (MOMO) is the biggest puzzle in the portfolio. The company’s quarterly report killed analysts’ estimates, with 633% growth in EPS and 421% revenue growth. Forecasts are for 77% earnings growth in 2017 and 40% in 2018. But there’s no use telling a stock what it ought to be doing. We will book a partial profit in MOMO by selling half of our position and move the rest to a Hold rating. MOMO’s correction has scrubbed almost 10 points off its price from its May 22 high. We’ll lower our exposure and keep the other half on a short leash. SELL HALF, HOLD THE REST.
Paul Goodwin, Cabot Emerging Markets Investor, www.cabotwealth.com, 978-745-5532, May 25, 2017