With an overall gain of approximately 25%, Trifecta Stocks portfolio co-managers Chris Versace and Bob Lang decided to take their profits and exit their position in Danaher (DHR) . Trifecta Stocks sold all 70 of its shares at approximately $80.71 as the global science and technology innovator's stock was holding relatively flat Monday.
In a note to subscribers, Versace and Lang wrote that they have "waited patiently" for Danaher to complete its spinoff of Fortive (FTV) and with that transaction complete, they will look to redeploy the returned capital in a few days.
As for the spinoff stock, the portfolio managers said, "we will continue to wait for the initial Street Quant rating on Fortive to determine our next steps with regard to our FTV shares." Fortive current makes up 0.54% of the Trifecta Portfolio.
Versace and Lang also trimmed their largest position, Costco Wholesale (COST) . They sold 25 shares at around $167. Costco shares were up less than 1% when the market closed.
"Following the 18% surge in COST shares over the last several weeks, to $166 from a low of $141 in mid-May, the position size has risen to 6.7% of the overall portfolio," noted Versace and Lang. The two called it a "good problem to have" but decided to modestly reduce the size of the holding.
While Trifecta trimmed its position in COST, the co-managers suggested that "newer subscribers should look to add to their COST position below $160," as they continue to see Costco gaining consumer wallet share in the second half of the year.
Meanwhile, Action Alerts PLUS holding Twitter (TWTR) stock was again surging on takeover talk. Ross Levinsohn, Yahoo's (YHOO) former interim CEO, said he believes the social media company will be acquired in less than two years on CNBC's Halftime Report Monday.
"I don't see a chance that this is an independent company within 24 hours," Levinsohn said. He added that Apple (AAPL) , fellow AAP holding, should consider picking up Twitter as an asset.
Twitter makes up only 0.51% of the Action Alerts PLUS portfolio and co-managers Jim Cramer and Jack Mohr wrote on Friday that they have "yet to see an increase in engagement or active users and need to see some evidence that these efforts have been appreciated by the platform's users."
But regarding a takeover, Cramer and Mohr have said since February that they believe it is "important not to get sucked into the speculation in the absence of a tangible offer or active, substantiated deal conversation(s)."