Merchant’s Bank (MBVT) has done very well over the last 3 months. I believe it’s time to take some profits. I sold a sizeable portion of my position in Merchant’s today, most of which I purchased back in early 2011, making a gain of about 65%, not counting dividend revenue which has been around 4% up until recently.
I sold about 1/3 of our position in Merchant’s but would be willing to buy it back at a lower price, which will most likely happen in the near term. I would look for a target price of $28 or less.
My feeling on Merchant’s are still quite positive, but I just believe the price is getting a little high and I believe that it will be lower soon. Even though I sold half of my position, Merchant’s is still my largest position in our portfolio.