Watch and you will learn. I've been watching this stock for some time since my friend and my sister have an interest in the company. The stock should of lost more with the earning shortfall however its very close to the 52 week low. When ex-dividends date come closer and past next week I think this will head below 25. Just watch it happened to other stocks with dividend interest.
If you had bought HE 10 years ago , you would have more than doubled your investment and also reaped profits on the dividends...
Yeah there are a lot of stocks out there that are not buy and holds..
HE is still a great buy and hold...
igurumo and olermotocyclist need to go post their crap at another stock board, their foolishness does not fly around here...
old: I should have earlier made it clear that I was not shorting the stock. I have NEVER shorted a utility stock. You make some good points (not to buy and hold at all costs)that should heeded. It never pays to get too emotionally attached to your stocks. I hope you too, are sucessful in your investment endeavors.
I think everyone here would agree, buying and holding, no matter what, for ever is never a good move.
I learned that lesson back in the late 1950's. My Dad was a Captain for TWA, he invested a good sum in TWA before Hughes ran the price up and then dumped it. I remember it's stock price was a topic of conversation at the dinner table, when it went from $10 a share to $100 and back to $10 - after Hughes sold it. My dad said "Oh well". I thought, "How dumb, not to take the profit". But I was just a kid, what did I know.
Then fast forward to the frantic 90's. We bought World Com when it peaked, and told ourselves it is BOUND to go back up. How dumb, we finally realized that we had rationalized our investment down to pure cents a share.
So now we set an automatic sell price and stick to it. No emotion, just deal from facts.
So yes I believe in what you say, maybe we do not agree on specifics but, it is dumb to buy and hold - no matter what the news.
Now that being said, from the way you stated your position early on in your posts I assumed (wrongly) that you were shorting HE, and on this board, we do not like to hear from Chicken Littles.
My appoligies and I hope you have success in your investment plan.
hei4me: No sir, I do not believe the sky is falling at all. What I do believe is that if you are in the market to buy HE there will be a better time than now. I am not short the stock nor do intend to be short. As for a balanced portforlio, I have one. At some point, I will consider HE as a "foundation" piece of it. The day of buying and holding a stock forever is shortsighted (IMO). In the end it will cost you money. My only goal in discussing interest rates on the HE board is to offer some advice that I have found works. No dark ulterior motives. If you do not have an open mind than my comments have done no good. That's OK too! I hope your weather is good and I wish you a wonderful and profitable investment.
"hei4me: One last point and I will excuse myself from commenting further and just keep a watch on rates. HE is DOWN about $2.00 in the last 12 months. Track that with rising interest rates and you will see the correlation."
You wrote this with out even mentioning the last 4 earnings reports that are part of the last 12 months. You are my friend a very interesting investor you will tell everyone the sky is falling because economics 101 tells you so but let a storm like the those earnings reports batter HE and not one word from you about them.
So let me sum this up for you, no matter the stock, if it has anything remotely related to interest rates such as dividends it is not a good investment but a money market investment, that has just in the recent quarter, been anything remotely close to a good investment is? IS Money Market better than being paid right at this moment 4.7% by HE's dividend?
I believe my friend you need a refresher in economics 101 since in that class it is taught that everyone should have a balanced portfolio and anyone that would dump their investment in a company that has a history of paying dividends and also has at the same time a history of performance would not be an individual that had taken the economics 101 course but one that has spent to much time watching CNBC.
Finding a stock such as HE should be everyones goal for a balanced portfolio, If your portfolio was a house HE would be its foundation something to hold up the rest of it. Not something that you would be in play to be traded short term such as a non dividend paying growth stock.
To each his own when it comes to investing, it is quite clear to me from your $2 statement that you have either been burnt and bought in high or that you are using HE's inability at this moment to reach that same high as a tool to discurrage investment in HE.
One last thing you have calculated the -$.75 on the basis that I have paid in the last year the same amount for each quarterly reinvestment. Actualy just one quarter of the year was bought at the high then each purchase since then was at a lower cost per share as price declined. A very minor portion of the total shares that I own of HE where purchased at the high and the proper way of finding the real performance of my investment would be to average and believe me it is in the positive and not the negitive.
I have been in the DRIP three times, 1980, 1990 and again in 1995; still holding. Had to sell some years before to get a new roof etc. while deployed in the U.S. Navy. I am now retired from a second career and Love the stock and continue to add as possible and receive the great dividends.
old: I do have a life and it does not mean being tied to my computer in a dark room. Just the opposite. I check in on my "watch list" about once a week. In the case of HE it is probably twice a week because I expect an interest rate peak about March of 2006 (IMO). Once I buy HE (again) I expect to hold it as long as interest rates are declining. Selling again once the cycle turns up. The ONLY way to play utility stocks (IMO). If you invest for the long term than great. I choose to make more money riding the interest rate cycles. It has worked well for me for many years. HE responds like clockwork to interest rate cycles. I expect it always will.
igurumo: you wrote :You would have been better off with the money in a money market fund waiting for interest rates to peak before owning the stock."
Maybe if today you were considering buying HE this very instant, yes, but you are dead wrong for us that have been holding for a long time: market timing is an educated crap shoot. Trust me, my Beta Gamma Sigma spouse did it for years and about broke even. She now believes in doing Due Diligence for long term investments. Plus she sleeps much better at night and is not tied to a stupid machine all day long watching minor market moves like a hawk.
Frankly I feel sorry for market timers, huddled with their PC's in some dark room somewhere, they need a life!! UGH!!!!
Many holders of utes are long term players, not timers. That is what hei4me has been espousing with his drip re-investments.
So you are arguing with those that have abandoned market timing as the way to go.
I just read what you write with mild amusement, and comment "Oh Well" based on our far longer term perspective.
NOTHING will ever replace doing your DD. For either long or short term investment.
One can make good money either way, but at least we have a life now.