I wish I hadn’t bought ServiceMaster Global Holdings (SERV) in my long-term 50 Stocks Portfolio back on December 17. But I did. It was a bargain then. It’s not now. And now I think it’s time to cut my losses after some relatively minor gains on March 24 (2.97%) and today (0.58%). My total loss on this position is 33.71% a little over three months. No wonder Wall Street is saying this is one of the fastest bear markets on record.
I still like ServiceMaster’s business in pest control and disaster recovery over the long-term since I think both pests and remediation of flood damage will be unfortunately, growth markets in an age of climate change.
But right now I don’t see customers with a lot of cash to hire ServiceMaster or a burning desire to invite the company into homes during this time of Stay-at-Home orders and lockdowns in various flavors.
Right now this is a sell.