I have just recently divested my entire stake of 200,000 shares of CDW Holdings, at $0.265 and $0.235.
This is a company where the business has deteriorated rapidly over the past couple of years, and I was genuinely relieved to see the last of my shares sold, despite having to recognize a relatively small loss from the divestment.
My initial investing hypothesis mainly involved a turnaround of the business after they have acquired Pengfu, a turnaround that never really arrived. Instead, the bad news just kept arriving, to the extent that the business has changed materially from when I first analyzed the company.
Here’s the initial investment thesis:
In this post, I’ll aim to reflect back on my initial thesis and the reasons for investing, discuss what has since transpired, and finally, my reasons for divesting (if ...