RE:Let it grow
jelijo612 wrote:
Of all my stocks, only FC is under water. Of course bought it at $15
Did you really buy it at the top in January 2020 after they reiterated the special dividend that you had to be a shareholder of in December to receive? Did you have anouther reason besides seeing the chart just moving up to the right faster and you got FOMO? Usually that's a sign of problems coming, tho no one could have really expected what happened it was still a rather negative sign that a natural pullback was likely in the cards.
Your gonna come out ahead and already should be very close with the dividends already paid back to you. And the future should be decent but much flatter as I think we are well over priced above $12.70 based on an 8% yield yearly (specials included) I feel is warranted in this sector and in relation to its competitors one of which I own a large position of also (MKP). I would like to see a full dividend increase as I would feel more comfortable with a .0825-.085 dividend than wait for an end of the year special. That increase would lead to a quick spike of people noticing the movement, but in my opinion not move the fair value price as a $1.02 yearly payout just eliminates the special for now. I feel every company in the sector is currently over valued, with FC and AI trading for the highest premium prices right now, AI has an ok argument for a premium as in it raises the dividend fairly regularly but in very small amounts and also usually pays a minor special which it skipped this past year.
I'm in for a 9.2% yield at $11.02 which I bought in July after the spike in June. I jumped in myself only knowing the company for a few weeks, and it was a semi FOMO, recovery play. I'm tempted to sell out for a 40% profit thus far and find something else with more opportunity and revisit when I feel the value is here again. But I love my yeild on cost, the consistency and the company itself. I'm at a crossroads. I think I'll put in a stop after we see a couple weeks of the upward trend flattening and I'd feel a fool if I missed out on the upside strength interest we are being shown.
But would like to hear your thought processes not just my guesses on what prompted your purchase, I think it would be a very good learning moment as I've done the same before myself and have caught falling knives in the oil sector.
For those wondering others in the sector : MKP, AI, TF, BRE... those are ones I know of and watch.
I own my largest position in MKP at almost 25% of my portfolio and it will increase next month with a rights offering I will be taking advantage of. My FC position is about 7% of my portfolio, and I've done a short term trade in BRE last summer which was a poor call on my part as it's run has been similar to FC but has flattened more recently. My portfolio construction is outta whack with MKP I don't suggest such a large holding, but it's price movement recently and advantageous offerings have led me to a sizeable position when I should be diversifying more.