On January 16, 2018, we executed the following transaction(s):
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We sold our entire holding of VF Corp (VFC) at the market.
This closes out the transaction executed on January 13, 2017 where we outlined our consideration of VFC. At the time, we said the following of the stock:
“The SRL indicates that VFC should decline at least to the $47 level or another 8%-10%.”
By coincidence VFC fell fairly close to a $47 handle at $48.05 shortly afterward, as seen in the chart below.
The updated Altimeter is amazing as it peaked on November 24, 2017 and turned lower from there. The move from the low (green line) to the fair value level (blue line) is consistent with Dow’s view that investments be made with the goal that purchases today are likely to lead to general public interest later. When that general public interest arrives the “operator” generally sells, foregoing the potential that the stock will increases. In this case, to the extreme or overvalued level (red line).