Today, March 15, shares of Marvell Technology Group (MRVL) closed at $48.08, slightly above my target price of $48 a share.
In this very volatile market for technology stocks, I’m going to take my almost 20% profit (19.90% to be exact) and sell these shares out of my Jubak Picks Portfolio tomorrow, March 16. The profit came in less than two weeks from my March 6 buy.
In many markets I’d take another look at that target price and up it. I’d figure that the longer term prospect for the chip maker outweighed the possibility of short-term volatility.
In this market, not so much. When I set that $48 target price initially, I remember feeling that it was a bit “rich” and that I was already pushing at the edge of valuations where I felt comfortable. Given the size of the short-term sell offs that we’ve seen in technology shares recently, I’m going to take the cash here and move it to the sidelines while I wait for volatility to give me another chance to own Marvell at a lower entry price.
