Sell 300 Shares Of China Mobile (CHL) On 9/15/2014

I sold my 300 shares of China Mobile after deciding that the stock has gone up very fast and I’m unsure where the stock is going from here. I have a profit of $2,087 and as I have held the stock for more than one year, it will be a long term gain that will be taxed at a straight 15%. (click below for a bigger picture)

sell chl

The History Of This Stock Pick

I originally bought CHL way back when the company was reportedly close to signing a deal with Apple to carry their iPhones. I figured a deal that was good for Apple should be good for China Mobile as well so I bought the stock. 

Things didn’t work out as I had planned as no agreement came and as the months went by, the stock kept going down. I decided to keep the stock because the company was in the midst of rolling out massive amounts of infrustructure which I thought would ultimately pay off. I also know it was just a matter of time before the deal with Apple would be finalized.

Eventually the AAPL-CHL deal was announced and the stock started climbing back up. Eventually all my losses were erased and the stock kept going up from there till it hit its 52 week high of $65.55 and I am selling here at $63.14.

Why I Sold China Mobile

I sold for several reasons:

1) The stock has gone up very fast and I am happy with the gain I have.

2) The iPhone 6 is getting a delayed release in China due to unknown reasons. 9/16/2014 update: breaking news today is that the iPhone 6 may not come out till 2015 in China and CHL is taking a big hit. I sold JUST IN TIME!

3) I don’t have a good enough understanding of the company to feel I have a good read on whether there are more gains left in the stock. 

So, I am selling because my gut tells me that shouldn’t get greedy and that I should protect the gain I have. I must admit that the situation with the iPhone 6 running up against some unknown bureaucracy holdup in China has me a bit scared and was the thing that pushed me over the top to sell. I would assume the iPhone 6 is very important to China Mobile going forward and I just don’t want to be holding the stock if some bad news comes out regarding the delay. 

I always write that you should buy and sell with the goal of sleeping well at night. If you are worrying too much about a particular stock, maybe you should sell it and return to sleeping well. That is the case with this decision and I have chosen to get out of the stock now and hopefully buy another stock that I have a better understanding of. 

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