08-27-2015, 08:04 AM
I can only speak to what I try to do. First, my initial buys would only be made if a stock was in what appeared to be 'value' range, as to me, there is no reason to chase price when there are always so many choices that represent value. Once purchased, if everything remains sound, ie. no serious red flags develop, then accumulation takes place until the desired target weighting is achieved. Once the target weighting is in place, additional purchases would take place averaging down at widely spaced increments of maybe 10% in order to preserve the weighting.
For you, if you still like HSY, and you started with your desired weighting, that would mean that it is probably past time for an incremental buy. If wising to increase the weighting, then this is certainly a better time to do that than was the case with your initial buy. I'm a little bothered by HSY's high pay out ratio. Also would love to see more cash on hand for a company of their market cap. Am further put off by their historically high P/E ratio. That is just from glancing at Yahoo stats and with only superficial knowledge of the company.
Personally I wouldn't consider HSY above about $55-$60. However, I'm not a typical DG investor, and my entry price will not likely come before a major market contraction hits. Still, I'm just not impressed with chasing after stocks with p/e of over 14 or so of any mature company. IMO the bargains will come, and it is better to just accumulate cash to take advantage when the big drops arrive or either focus on some sector that is presenting historically good value in the current market.
For you, if you still like HSY, and you started with your desired weighting, that would mean that it is probably past time for an incremental buy. If wising to increase the weighting, then this is certainly a better time to do that than was the case with your initial buy. I'm a little bothered by HSY's high pay out ratio. Also would love to see more cash on hand for a company of their market cap. Am further put off by their historically high P/E ratio. That is just from glancing at Yahoo stats and with only superficial knowledge of the company.
Personally I wouldn't consider HSY above about $55-$60. However, I'm not a typical DG investor, and my entry price will not likely come before a major market contraction hits. Still, I'm just not impressed with chasing after stocks with p/e of over 14 or so of any mature company. IMO the bargains will come, and it is better to just accumulate cash to take advantage when the big drops arrive or either focus on some sector that is presenting historically good value in the current market.
Alex