Monday, September 23, 2013

Selling FDO

FDO is up today, and I've decided to sell my entire position.  I executed a limit order today for $74.15, booking a gain of 32% since I purchased it in January and February of this year.  My average cost was $56.15.

I've grown increasingly uncomfortable with the valuation of late; the current yield is only 1.4%, so it was time to book profits, and look for a better investment.

At today's PE of 19.5, the stock is trading an historical premium to it's earnings justified valuation. 

Looking at price to book value ratio, shows a similarly lofty valuation:

Thus, I'll take the gain and move on.

That's all for now, 



  1. Good move!
    Don't forget to let us know what will be your next buy :)

  2. Thanks Grox. Holding the cash for now; October is always a good month to pick up some deals!