Wednesday, April 27, 2011

Profit Taking and its Pains

I finally took some profits a couple of days ago from one of my favorite picks, DMC. The company was trading at all time highs and it has for the most part received a lot of selling pressure at the 48 level. I sold more than half between 47-48 and have left behind a small position. Today its trading at the 44-45 level and I expect it to go a tad bit lower before I would find this stock attractive again. Don't take it as my advice to stay away from the stock, I love the company and think its got some room to grow for 2011, 2012, and 2013; but numbers tell me that the company is already being overbought and it would be prudent to take profit then see your profits slowly melt away.

Lately, I've been asked by a number of friends whether or not LR and AGI is worth looking into. Truth is, I've never really bothered. I pay close attention to its prices and its numbers, but I've never really considered in depth research. This is what I've been hearing; both companies are worth at least 15 pesos a share and that AGI has recently broken through resistance, while LR has finally met some. Either way; the price movement of both these companies have been for the most part phenomenal in the past few months. And if past number are any indication to its potential, they've got some way to go.

SCC, has recently declared a 10 peso per share cash dividend due to be credited on June 22, 2011. On top of that, most foreign and local brokers have re-rated it upwards. Prices may have fallen recently, but I personally think that was a great opportunity to buy. If any of you are interested in a vertically integrated company with plays on resources and consumer needs; then SCC is definitely worth looking into. Don't let its past numbers scare you, do your research; you will find that the company at today's price is relatively cheap.

3 comments:

  1. scc 10/sh is a big cash div. and xdate may 24 is still a month away. enough time to add more to the portfolio. do u think that s wise? i know the share price automatically adjusts on xdate for stock dividends. does the price also adjusts for cash divs?

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  2. how about writing also about "the pains on not taking profits" next time. i feel this kind of pain more often than the pain of taking profits.

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  3. tsunami at guscosio commented that on correction u wait 3 to 5 days before deciding to move (rebuy). dmc is monotonically down for 5 days already but divergence and stochastics are not giving good signs yet. is 43 attractive to you, pretzel?
    i have no cash now but i might sell some of my other positions so i can rebuy dmc
    if it goes down to 42.

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