RE: RE: RE: $34 is looking loftyI have since rebought most of my position at about $31.80.
This was/is a core holding for me. but I learned a long time ago with individual stocks: if something just suddenly runs up way ahead of its trend line for valuation, sell it. Guaranteed you will be able to buy it back for at leat 10% less within a short time frame. Even if you only do it with a long term holding once, or even twice, it can really affect your ending returns, especially dividends.
Remember: if you sell $10,000 of Fortis at $34 a share, you sold off 294 shares.
If you buy it back a short while later , $10,000 worth, at $31.75, you now have 314 shares.
Often these buybacks can be within 4-8 weeks. Sometimes you dont even miss a dividend.
I sold of Ag growth for $53 a share, and bought it back for $47 in a pretty short time frame. Using 10,000 as an example, thats selling 188 shares and getting back 212. Thats a huge difference, for just a quick move.
Buy and hold, steady freddy, its the way to go. But when the market hands you something obvious, even just once, you might as well take it. It works especially well for dividend stocks, as you get the dividend compounding on the boosted share totals.
Fortis has historically sat with a P/E of about 17. At todays earnings thats $29.75 or so, so it is overvalued according to its own patterns. I guarantee, things return to equilibrium in the market every time.