08-06-2014, 09:25 AM
(08-06-2014, 08:41 AM)TomK Wrote: Does this morning's 14% drop feel like a major over-reaction to everyone else too, or is it just me? I'm tempted to grab some shares (or maybe even a small long call position) on this major dip. It is not like the company's performance is deteriorating. They simply announced they would not be doing an inversion. Was this much of their share price REALLY based on the presumption that they'd be avoiding a lot of taxes in the future as a result of the inversion?
I haven't dusted off the fundamentals for WAG In a while. Not too excited about just a 2.2% yield, but on other metrics, isn't WAG doing pretty well?
And, by the way, haven't inverting companies been getting bashed left and right? Shouldn't WAG be applauded for this?
I had a look at WAG a while ago and thought it was overvalued and decided not to initiate a position. I'll have to take a closer look at it now again. They have a great track record for the 5-yr and 10-yr divi growth rates.