Stock of the Week Alert: Sell On Holding (ONON)
On Holding (ONON) is in full retreat mode since reporting what appeared to be mostly good earnings on Tuesday this week. The fact that the retreat is occurring against the backdrop of a surging market – the S&P 500 closed at new 2023 highs on Thursday – makes this mini-collapse in ONON look worse. It was enough to prompt Mike Cintolo, who originally recommended the stock to his Cabot Growth Investor audience, to sell the stock in a special alert earlier this week.
Here’s what Mike wrote on Wednesday: “(On Holding) has all the makings of a leader and released a great Q1 report … but, like so many names, that hasn’t stopped sellers from swarming. Yesterday’s dip was sharp, but acceptable, but today’s heavy-volume follow-on selling has us cutting the loss on our half-sized stake. SELL ONON.”
We gave the stock an extra couple days to see if it might bounce back. It hasn’t. Ordinarily we might give a volatile growth name like ONON a longer leash, especially considering we just added it to the portfolio at the beginning of the month. But our portfolio is already at maximum capacity, which means something would have to go on Monday anyway to make room for the new addition. No need to wait that long: Let’s sell On Holding (ONON) now, and hopefully we won’t have to do any more selling come Monday. SELL
