We’ve rotated the portfolio a lot in the last few months. Let’s finish the job by taking profit on two last names.

The goal here isn’t so much to signal that these stocks have topped. We’re simply trying to liberate cash to put to work throughout 2022 . . . creating a foundation for continued future success.

Juniper Networks (JNPR) has been a very strong performer since my recommendation, especially considering the overall uneven performance of the value universe. However, with the stock trading at 18X next year’s EPS estimates (a big premium to its historical averages), I believe the improved growth profile is largely priced. Since I am having a hard justifying raising my target price, it’s time to  sell JNPR.

Kronos Worldwide (KRO) has also enjoyed a typical small cap “Santa Claus” rally in recent weeks. However, even though the management has recently increased customer pricing,  overall demand growth for titanium dioxide in global economies seems to be waning. At 18X free cash flow, the stock does not appear to be cheap at a time where this is a slowing global economy. Sell KRO.

Inner Circle subscribers, both of these exits apply to you.