Posts: 1,899
Threads: 48
Joined: May 2013
Reputation:
10
(10-20-2016, 03:56 PM)EricL Wrote: I think it is simply the case of reversion to the mean. At its peak, DPS was trading for more than 23 times earnings, compared with a historical range of 15-16. Even after its pullback it is trading well above normal valuation levels. This can be seen across many of the "safe" consumer staples that had been bid up in the chase for yield, like MO, RAI, GIS, KMB, CLX, etc.
My guess is its simply a case of a rotation from the safe sectors into some of the beaten down ones like energy and industrials.
I think I agree with you. No specific news seems to be driving the decline, and I guess I didn't realize it's PE was so high. Thanks!
Posts: 403
Threads: 15
Joined: Aug 2015
Reputation:
7
I'm looking at opening positions on LOW and SHW by EOD.
crimsonghost747
Unregistered
RTN down 3.5% at the moment after what seemed to be a pretty decent quarterly report. At least I didn't see anything super alarming there, though I guess you don't need much when the stock is trading around all time highs.
It's already my biggest holding so I don't think I'll be adding at these prices, however it might be worth a look for some of you.
Posts: 1,873
Threads: 35
Joined: Jan 2016
Reputation:
6
(10-27-2016, 03:40 PM)crimsonghost747 Wrote: RTN down 3.5% at the moment after what seemed to be a pretty decent quarterly report. At least I didn't see anything super alarming there, though I guess you don't need much when the stock is trading around all time highs.
It's already my biggest holding so I don't think I'll be adding at these prices, however it might be worth a look for some of you.
RTN is back to where it was before the spike last week. Got a bit ahead of itself. I own BA and LMT. Not sure I can add this one as well lol unless it hits $130 or so. Too many good buys right now in the market and you cant buy them all lol
Posts: 1,899
Threads: 48
Joined: May 2013
Reputation:
10
KO has quietly been trending down for the last six months, going from ove $46 to $41. If it hits $40, I'd imagine that a lot of people would be interested.
DEO crashed from $118 to $100 very quickly in just the past few weeks.
Posts: 1,873
Threads: 35
Joined: Jan 2016
Reputation:
6
(11-23-2016, 09:44 AM)DividendGarden Wrote: KO has quietly been trending down for the last six months, going from ove $46 to $41. If it hits $40, I'd imagine that a lot of people would be interested.
DEO crashed from $118 to $100 very quickly in just the past few weeks.
I got my eye on MDT and LLY. Both quality names that are getting hammered. I'm not pulling trigger yet but will watch next week to purchase.
Posts: 1,899
Threads: 48
Joined: May 2013
Reputation:
10
General Mills (GIS) at a 52 week low, $57.50. Just thinking about it here, but it's price action looks ugly. Great margins, but declining revenues.
Posts: 1,873
Threads: 35
Joined: Jan 2016
Reputation:
6
(04-20-2017, 10:38 AM)DividendGarden Wrote: General Mills (GIS) at a 52 week low, $57.50. Just thinking about it here, but it's price action looks ugly. Great margins, but declining revenues.
GIS is interesting but why not just buy T or VZ? Seems like a safer investment. GIS if you look at a 5 year chart was nothing more then a dividend play with no growth and traded in a tight range of $54-$56 until 2016 before it broke out. So it's probably where it should be on a valuation level now. Retail stocks like TGT and LB seem like good value plays near 52 weeks lows but retail scares me.
Posts: 1,899
Threads: 48
Joined: May 2013
Reputation:
10
(04-20-2017, 11:19 AM)divmenow Wrote: (04-20-2017, 10:38 AM)DividendGarden Wrote: General Mills (GIS) at a 52 week low, $57.50. Just thinking about it here, but it's price action looks ugly. Great margins, but declining revenues.
GIS is interesting but why not just buy T or VZ? Seems like a safer investment. GIS if you look at a 5 year chart was nothing more then a dividend play with no growth and traded in a tight range of $54-$56 until 2016 before it broke out. So it's probably where it should be on a valuation level now. Retail stocks like TGT and LB seem like good value plays near 52 weeks lows but retail scares me.
Retail/brick and mortar definitely scare me. I've owned T for a long time, but have never gotten into VZ. I'll take a look.
Posts: 1,899
Threads: 48
Joined: May 2013
Reputation:
10
SJM at 52-week low. Also, GE very low. Thinking about adding to these two, both of which I've owned for many years.
Might sell some AXP and DE to fund these purchases, as both are relatively high.
Looking at XOM, WSM, both are trading very low.
Posts: 1,873
Threads: 35
Joined: Jan 2016
Reputation:
6
WSM looks good at these levels. I have followed this stock for a very long time. Amazon will have no affect on this company. It's been sold off with the rest of all the retail stocks. They beat estimates and raised them. So they should be in better shape then most going forward.
|
