A stock passes your target, keeps climbing, and more than doubles. Do you sell because it passed your target price?
Several subscribers have asked me that about the December energy pick.
It’s up 126%, and the price is well above my original target. If you have been following my picks for a while, by now you know that we encounter that question more than once a month…and should know my answer by now.
I’m keeping the BUY.
That doesn’t mean the opportunity is the same. I’ve raised the dollar target, but the remaining percentage upside is smaller. The business has delivered, the balance sheet has improved, and the war has pushed fuel markets far beyond the assumptions I used when we entered.
In this update, I revisit what I got right, what I missed, and how much of today’s profit belongs in a long-term valuation. I also explain why this position still has a job in the portfolio while the Iran war continues.