After buying some shares on July 13th @ 48.79, am now down over $7.00 a share . Sure this stock pays a nice dividend, but how long will it be before it ever sees $48 and change again?
I bought this as a long term investment,.
Any comments, ideas, would be appreciated..
House of Pain,
This is a stock to buy and hold forever. If you want short term gains, buy GOOG or some such high flyer. Look at the long term chart. Isn't that good enough? This is a stock you leave in your will and NEVER pay capital gains. It's been a cold winter so they are making money. I hardly ever look at the day-to-day change in the stock price. I'm in for the return of principal (it not a dividend...this is a limited partnership)
buy more and average in. If you did not own it already it might look like a real deal. The problem is not with this stock in particular . The entire market has suffered. Seems like this would be good in a recession.
The company is pricing themselves out of business. Lucky for them they have many inground tanks. New housing has fallen off a cliff so new tank installs must be down. Warm temps are really going to hurt the current Q and full year.
"How they have been doing it" for the past few years is through operating efficiently and eliminating unprofitable customers. The concept of newcomers breaking into this industry is nothing new. The old industry model, which is still being followed by some of the majors is to continually acquire the little guys to maintain or replace lost volumes. Sooner or later, real organic growth is going to be necessary to remain a winner in this industry. SPH appears to be best positioned among the majors because of their focus on operating more efficiently rather than just following the old model. Their lack of small acquisitions over the past few years tells me that they "get it", which is half the battle. Execution will be the key going forward.
I bought this one on 5/24 @ $48.05
and after some pain again on 11/20 @ $42.34.
If the pain continues I may be in again in Jan.
My point being that when the pain ends I expect to
be dancing the JIG!!!!!
this is a great company and will come back as soon as the market turns around. the fourth quarter is always their weakest. you will be a winner. This is the time to buy more. keep an eye on the volume.