I sold my entire position in HABT this week. Several reasons contributed to my decision.
1) I wanted to maintain a comfortable cash position, and after buying BSQR my cash had gotten pretty low.
2) Although I believed strongly in all the positions I held, I thought it probably best if not all of my holdings were in the same sector (restaurants). Between HABT, GTIM and RAVE, I felt the risk/reward on HABT was the least attractive.
3) Watching HABT’s trading since its IPO, along with observing how other restaurant stocks (including recent IPOs) have been trading, my thinking started shifting a bit that it might be more profitable to swing trade HABT than hold it over the long term. I think buying HABT in the low $30s and selling in the high $30s, perhaps with an upward bias over time, could be very attractive. While my preference is still to hold positions for long term capital gains, any swing trade or shorter term strategies I might pursue would be done in my tax deferred accounts.
So, those were my reasons. I made around 15% on HABT, so not bad. I could have done much better swing trading HABT a couple of times since I first bought, but that was not my strategy when I bought. As I mentioned, I will be keeping HABT on my radar. With this sale, my cash position is now around 20%.