Sell Alert: Franklin Financial Network (FSB)

By Jim Pearce • October 14, 2016

TRADE INSTRUCTIONS

Date: October 14, 2016
Name: Franklin Financial Networks
Symbol: FSB
Type: Close
Limit: Sell at $36.75 or better

TRADE RATIONALE

We are closing out our position in Franklin Financial Network. We issued this alert on August 29^th at an entry price of $34.42 and a target return of 6.9% which we achieved after being stopped out at $36.75 earlier this week.

This position was open for 44 days, resulting in an annualized return of 56%. That’s short of our stretch goal of a 100% annualized return, but with the presidential election occurring prior to the termination of the target holding period, we felt it would be better to lock in this gain in case the stock market reacts negatively to whatever the outcome of the election turns out to be.

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Amol Shelar

10/14/16 ‐ 5:38pm ET October 14, 2016 at 5:38pm ET

Hey Jim, If this position was closed because of upcoming elections, should we be closing all other trades too?

Jim Pearce

10/14/16 ‐ 6:16pm ET October 14, 2016 at 6:16pm ET

Not if we haven’t achieved our target return. Also, FSB is a bank, an industry that is in the political crosshairs at the moment thanks to DB and WFC so I’m not keen on remaining exposed to that sector here in the U.S. (but I don’t view that as an issue for our Argentine bank).

Guest User

10/28/16 ‐ 12:56pm ET October 28, 2016 at 12:56pm ET

Jim

I understand this position is closed but this is a very good bank with good financials, why the sudden crash in price especially when they posted 3Q profit? Also do you this dip is a good entry point since we have this pending rate hike issue coming up next month or so again.

Thank you for your ever swift responses.

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