Sell Our Paper Company

Packaging Corp. of America (PKG) is enjoying a bounce today after slumping badly Tuesday on the weak manufacturing data, with containerboard, one of PKG’s products, mentioned as one of the weak points.

We still have a 7.6% gain in the stock including a dividend you will receive shortly since my July recommendation, while the overall value market has changed little. I believe a good risk management decision here is to lock in this over-performance and sell our position here, as I do not believe the concerns over the economy are going to leave in the near term.

Sell PKG. We now have locked in solid profits in three out of our past four selections, with the other, Valvoline (V) performing well. I will have a new pick prior to our new issue on Tuesday.