This stock is a monster!!
The million dollar question becomes when do you take profits? I am up huge, atleast for me, on the 1,000 shares that I own. With results coming next week it becomes difficult to make that decision as to when to ring the register. I see many brokerages have 12 month targets around $45. I think if we see any share price that begins with a 4 I am going to have to think hard about moving on. Bulls make money, Bears make money, but Pigs get slaughtered. Don't forget this, it has helped me over the course of my investing career.
If you are still bullish on the stock longer term, sell it (or part of it) to take profits, then use part of the proceeds to buy ITM Leaps Call options to lever up to your original holdings. IF you're bullish on the segment but concerned about the specific stock, spread the risk out by investing in competitors. OT: Anyone here own any BASFY.PK?
Study something called "technical analysis." It helps you determine whether your stock is overbought or if the rally is running out of steam.
No, it won't give you any certain answers (like palm readers will :P), but it will give you a way to weigh the relative risks of holding and selling.
I am fairly convinced that fundamentals don't mean much for making selling decisions. When the market runs out of buyers, big holders will exit, and the stock will get beat down.
Sorry to rain on your parade but the other posters on this board are absolutely correct. I am a CPA and accredited investor who has been investing his whole life. The only dividend yield that matters is the curent one which is dividend / share price. Your cost base in the stock does not mean anything to you. In fact even when making buy / sell decisions you are better off forgetting about your cost base and basing your decision on current expectations. The only person that should care about your cost base is the tax authorities and that's the only reason you need to track it. Otherwise don't base any decisions on your original cost base and you will be much better off.
"Let your profits run."
DOW still has further appreciation potential .... AT LEAST into the upper 40s!
The new plants just announced are a STRONG positive signal from management. How many other companies, in any industry, are BUILDING NEW CAPACITY?!
Earnings estimates keep getting INCREASED by ANALysts.
I can't justify buying more considering how large a part of my portfolio DOW is now, but I sure as hell am NOT SELLING any!
If you like charting, you may want to take a careful look at this stock. Believers in Elliot Wave Theory might see the approach to a Wave 5 crest.
Wikipedia: "Wave 5: Wave five is the final leg in the direction of the dominant trend. The news is almost universally positive and everyone is bullish. Unfortunately, this is when many average investors finally buy in, right before the top. Volume is often lower in wave five than in wave three, and many momentum indicators start to show divergences (prices reach a new high but the indicators do not reach a new peak). At the end of a major bull market, bears may very well be ridiculed (recall how forecasts for a top in the stock market during 2000 were received)."
Recommend selling some of your shares before summer.
If you are happy with $40 or more, why not sell 5 Covered Calls with a September strike at $41 or $42 or $45. If you lose 500 shares you cash in at $40+; plus you get to keep the covered call money. If it doesn't hit strike price you keep the stock, keep the dividend and get to sell another CC.