Nice that HNZ's buyout offer is raising the tide on food stocks, but I doubt there will be a rush of other bidders to buy GIS, KRFT, etc. Good time to sell GIS here based on valuation? Perhaps buy puts or sell calls? Thoughts?
The nice bump on Friday was from the HNZ buyout and the fact that Buffet is still looking for "elephants" (GIS & HSY) to buyout. That said long term holders may want to hedge their positions buying somes puts just in case they don't get purchased by Buffet. If no buyout comes the stock may retrace with a 10-15% pullback based on historical technicals.
I have held the company for years. I reinvest the dividends and watch the income grow over time. This is not a stock for people looking for a quick 10% or a 2 year double or more, but it slowly increases in value. Someday hopefully it will pay me in dividends enough to cover a large part of my food budget. Small unsophisticated investors as myself have seen this company gain year after year. It's not a road to quick riches, but I'm happy with my little gains in capital and the payout. If a person wants a quick buck in the Wall Street casino there are a lot better choices than this. I don't plan to sell this stock ever. It looks to me that the work a day employees, the managers, and the executives of the compnay do an excellent job of providing customers with good products and owners with good returns.
gopher-catcher: your reasons are sound, don't sell yourself short. GIS, like many others, is a good, solid, long term investment. It is this type of stock that will help you win the race over time to meet your needs. I too have owned this stock for somew time, and have no plans on selling. According to S & P research, GIS has almost double in 5 years. $ 10,000 invested five years ago is worth almost $ 18,000 today. This is a stock for retirement years, as are CL, KO, JNJ, RPM, ITW, and many others.
Sell if you like, but I've been buying this stock as a monthly buy/ DRIP for 20 years and have yet to be disappointed. Good quarterly dividends and periodic stock splits. Basically, unless people stop eating, this company is a good investment.
No fault in holding long term, but GIS is at an all time high based on all valuation metrics (PE, Yield) and certainly future growth prospects. It's a stable 10% annual grower (incl div). It's up 17% since I bought 7 months ago, likely to gravitate back to the mean when the dust settles (just my opinion).