Exit Position - Watches of Switzerland Group (WOSG)
I'm closing my position in Watches of Switzerland Group (WOSG) effective at today's close (December 11th).
Already trimmed half of the position last week after earning call rally. For me, the only positive was the confirmation of the FY25 guidance. However, I noticed on the JKR-Investing YouTube channel today that they also confirmed their annual guidance last fiscal year on 7 December 2023 with words “Full Year guidance unchanged“, only to revise it downward later on 18 January 2024 - “In light of the recent challenging trading conditions and based on a more cautious view of the outlook for the remainder of the fiscal year, management is now providing revised full year guidance for FY24, which assumes no recovery in consumer demand and reflects discussions with key brands.“. Downgrading the expectation in a month.
Lesson learned: Don’t trust the management blindly even though they have big stakes in the company - actually this may cause the endowment effect even if they don’t plan to dump their shares.
Based on this new information and the current expected value of the stock compared to other stock in the portfolio - with 60% profit in the stock, I have decided to close my remaining position. If the stock price returns to lower levels or the fundamentals improve as promised, I may consider re-entering.
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