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No. of Recommendations: 3
A reader here asked my why I sold if CRM interest is a good thing? This is what I said. Please tell me where my logic is wrong:


Yes it’s validation of the tech Slack has, if the rumor is true. If it’s true how much of a premium is CRM gonna pay? I took the 30% over yesterday’s price that the market offered as what likely Salesforce would pay. Maybe they’ll pay more, that’s why I kept half. If they do buy Slack, I do not want to own Salesforce?

I understand that I shouldn’t buy a company if I don’t think it’ll double in the next year. That’s my benchmark. I don’t believe Salesforce, if they do buy Slack, will gin up 100% premium. These are reasons for selling today; but, I wouldn’t sell if I didn’t have some other company that believed would increase in value more.

I wanted to own more Zoom at what I consider a discount price I think Zoom will go up 40-50% next week.

If my allocation of Zoom raises above 30% which I believe it will, I’ll likely sell to get back down to 20% - that’s where I feel comfortable/ sleep well.

My trading is usually only around the edges 10-20% of an allocation; but, I was thinking of doing the above trade prior to today’s 30% pop (see my post on the Slack premium boards yesterday). So my trading 50% of a position is reasonable only because I feel I really know the companies and how they trade and are confident in my sleeping well, if that makes sense.

Jason
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