Wednesday, December 14, 2016

Selling BBL, Adding to ABC

I put in a limit order to sell BBL today.  After cutting their dividend awhile back, I re-evaluated my reasons for owning the stock.  Since that cut, I decided to wait and see if the stock would recover some from the devastating 2015 oil shock...and it has.

Today, the stock is up 52.63% YTD, so it's time to say goodbye.  Without an interesting dividend yield, now only 1.74%, and pretty paltry growth forecast, the stock is not worth owning in my estimation.  I will revisit my watch list for something in the same industry Materials/Oil, but that provides a better outlook.  BBL FastGraph below....

On the buy side, I'm adding to my position in ABC today.  The stock, along with competitors ESRX and MCK, are down today based on comments from the Express Scripts CEO about drug pricing down the road.  This presents a nice dip, and good time to fill out my full position in the stock.