08-27-2015, 05:33 AM
Hey guys, I'm just wondering what people think of HSY at its current price.
I love the business and bought this perpetually overpriced stock over a year ago at $103 (I had no idea about value investing, just buying dividend stocks). It's down 15% at $88 and seems to be swinging back and forth between that and $90.
My question for everyone is if it's worth averaging down on the company. It's a wonderful company that I would love to own more of, but that doesn't mean the price is right. I don't do DDM analysis because I am terrible at it (Jason Fieber of Dividend Mantra valued it at $92), but I tend go by a P/E under 20 rule, and right now the company is at a P/E of 34. That's terribly expensive.
I'm sort of at a crossroads here. It's a great company, but while I'd be averaging down about 15%, that's only because I bought it at a high price because I didn't know what I was doing. I wonder if this is as low as HSY gets. It seems to be perpetually expensive (chocolate bars aren't exactly something that people HAVE to stop buying during a recession, unlike cars and computers). I also do not have a lot of money to invest; the next time I'll likely have available capital to throw into the fold will be likely in about four months time, so what I do right now is what I do right now. I fear that by the next time I have available capital, HSY will be back up to what it was.
Any advice you guys can give would be great. I'm just curious what everyone here thinks about HSY's value. Thanks!
I love the business and bought this perpetually overpriced stock over a year ago at $103 (I had no idea about value investing, just buying dividend stocks). It's down 15% at $88 and seems to be swinging back and forth between that and $90.
My question for everyone is if it's worth averaging down on the company. It's a wonderful company that I would love to own more of, but that doesn't mean the price is right. I don't do DDM analysis because I am terrible at it (Jason Fieber of Dividend Mantra valued it at $92), but I tend go by a P/E under 20 rule, and right now the company is at a P/E of 34. That's terribly expensive.
I'm sort of at a crossroads here. It's a great company, but while I'd be averaging down about 15%, that's only because I bought it at a high price because I didn't know what I was doing. I wonder if this is as low as HSY gets. It seems to be perpetually expensive (chocolate bars aren't exactly something that people HAVE to stop buying during a recession, unlike cars and computers). I also do not have a lot of money to invest; the next time I'll likely have available capital to throw into the fold will be likely in about four months time, so what I do right now is what I do right now. I fear that by the next time I have available capital, HSY will be back up to what it was.
Any advice you guys can give would be great. I'm just curious what everyone here thinks about HSY's value. Thanks!