Money and Finance
I'm a little torn on what to do with my small position in Walmart (WMT). I originally purchased the shares back in late April after the Mexico bribery scandal became news. At the time Walmart had dropped a lot over a few short days and I was able to pick some up for a cost basis of $58.59. Since then it has gone on a remarkable run and is currently up to $73.03 which is 24.55% higher than my purchase. I figured I'd start a little pro/con list to think through whether I should sell.
Pros:
(1) Got a YOC of 2.71% which is on the high end of their typical range.
(2) Still undervalued according to my DCF, Avg High Div & Avg Low PE price calculations.
(3) Payout ratio is still a very manageable ~35%.
(4) Still on track for a 10 yr YOC > 10%. 12.60% using a weighting of the 1,3,5 & 10 year dividend growth rates.
Cons:
(1) Didn't love the entry price more than for a quick turn-around in price. Made 24.55% in ~ 2.5 months, good for a 181.33% CAGR.
(2) Entry yield is below what I would like to maintain my portfolio at.
(3) Overvalued by about 16% versus the average of all my valuations ($62.98)
(4) Walmart historically has a ~25% trading range in a given year between low and high points.
(5) Position is very small, consisting of 9.054 shares.
I think for now I'm going to hold off on selling but if it reaches the $76 mark it might just be time to sell and take the gains.
Picking entry points is easy enough but picking your exit point is much harder and more difficult to follow through on.
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Money and Finance
Position Decision
I'm a little torn on what to do with my small position in Walmart (WMT). I originally purchased the shares back in late April after the Mexico bribery scandal became news. At the time Walmart had dropped a lot over a few short days and I was able to pick some up for a cost basis of $58.59. Since then it has gone on a remarkable run and is currently up to $73.03 which is 24.55% higher than my purchase. I figured I'd start a little pro/con list to think through whether I should sell.
Pros:
(1) Got a YOC of 2.71% which is on the high end of their typical range.
(2) Still undervalued according to my DCF, Avg High Div & Avg Low PE price calculations.
(3) Payout ratio is still a very manageable ~35%.
(4) Still on track for a 10 yr YOC > 10%. 12.60% using a weighting of the 1,3,5 & 10 year dividend growth rates.
Cons:
(1) Didn't love the entry price more than for a quick turn-around in price. Made 24.55% in ~ 2.5 months, good for a 181.33% CAGR.
(2) Entry yield is below what I would like to maintain my portfolio at.
(3) Overvalued by about 16% versus the average of all my valuations ($62.98)
(4) Walmart historically has a ~25% trading range in a given year between low and high points.
(5) Position is very small, consisting of 9.054 shares.
I think for now I'm going to hold off on selling but if it reaches the $76 mark it might just be time to sell and take the gains.
Picking entry points is easy enough but picking your exit point is much harder and more difficult to follow through on.
- Recent Buy
This morning I purchased 40 shares of Target (TGT) for a price of $61.81 per share. With the current dividend payment of $1.44 I was able to pick up the shares for a 2.32% YOC. I've been following Target for a while and the price just never quite...
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It seems I was a little late for the last pullback but I now have some dry powder available for the next one that is sure to come. I'll be setting up some limit orders today on MCD, INTC, AFL and possibly just buy outright some JNJ. It'll be great...
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I ran AT&T through my screening process to see where it currently stands. AT&T is closed on Friday 3/23/12 at $31.52. DCF Valuation: Analysts expect AT&T to grow 7.78% per year for the next 5 years and I've assumed that after that they will grow at...
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