Im new to the agriculture stocks and I wanted to initiate a position in CAG. Based on the earnings and forward economic outlook it seems to me that this sector is poised for gains. The stock however is at its 52week high, do you think that its wise to initiate a position here of wait for a pullback. Judging by the way things are going, there doesnt seem like there will be a pull back soon. Any comments are appreciated. Thanks.
Any time a stock hits a 52 week high, get out and take your profits especially when the insiders are selling too. (50K sold). You will always have the chance to buy back in when it starts to move lower. Anyone who doesn't take a profit in this market should not be gambling with their money. Look at other charts of well known stocks and watch the trend. They are all cyclical no matter what you own; even AAPL. Good Luck-Glad you made money on this one. CAG is a great stock, but not at this price.
This management has a vision. I find it rare these days but it's all about my watchlist that shows this trend. Don't expect huge price gains from here, it's a dividend machine not exactly a price mover. So does other agri stocks excluding those running on subsidiaries. The conf call has shown refusal to give up on margins as the commodities are easing a little, one really has to ponder global prospects here even if it does not look like it's necessary.
CAG has never let me down. It holds up well in a down market. Everyone needs to eat. They own several household national brands and will be acquiring more. The dividends are almost 4% and have never let me down over the 10 years I have held and added more.
Cag stock has shown strength the past month, since the last earnings report and an optimistic ,outlook from the CEO. analysts seem to agree Cag is a hold now. But i'm thinking of adding very slightly to my present position.