Category Archives: RGA

On Tuesday, March 27, 2012, the New Low Observer team will sell the principal associated with our investment in Reinsurance Group of America (RGA).  Below is a chart of our transactions of RGA to date.

We first bought RGA at $59.39 on February 3, 2011.  As the price of RGA increased +6% we sold the principal portion of RGA on May 2, 2011 and let the profits run.  It was just our luck that the price we sold at was the third highest closing price for all of 2011.

After the fallout of the market decline from July 2011, we repurchased additional shares of RGA on September 27, 2011.  After rising +23.30% since September 27, 2011, we will sell the principal portion of our investment in RGA.

The selling of RGA at this time is in keeping with our October 15, 2011 Dow Theory analysis recommending that the bull market rally that has materialized would be a great time to take profits.  This also explains why we have so many positions that are in the 1% range of our portfolio composition, we’ve sold the principal while letting the profits run.