Morningstar Portfolio Sells Stake in Office Depot
We took our chips off the table to upgrade the portfolio's health.
Morningstar StockInvestor's Tortoise Portfolio today sold its 200-share stake in Office Depot (ODP) at $13.79 per share. Although we still think the stock is a decent long-term bet at its current price, we are attempting to increase the portfolio's overall financial health in the face of an ongoing slowdown in the U.S. economy. Thus, we will probably use the cash from the sale to purchase the stock of a company with less debt and more stable cash flows.
We bought Office Depot (ODP) as a turnaround play on June 18 at a price of $8.89. At the time, we thought the company would benefit from a low-interest-rate environment. Since then, the stock has risen more than 50%, and we believe the gap between the stock price and its fair value has narrowed significantly.
Mark Sellers does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.