Back on September 24 2007, I issued advice to hedge the FDG position and hedge it in such a way that the dividend would still come our way while synthetically we were out of the stock.
I am not re-posting this as an I told you so, but to re-iterate the downside targets.
FDG has been a good one not only with a stellar dividend, but also some great capital appreciation.
Lately though, the stock has begun to show signs of Distribution and is looking more and more like a 30% correction in the stock price will be in the cards.
This correction does not take anything away from my $60 target for the stock, but it does tell us to buy protective puts as a measure to lock in our profits without selling the stock and still being able to collect the dividend.
I am not re-posting this as an I told you so, but to re-iterate the downside targets.
FDG has been a good one not only with a stellar dividend, but also some great capital appreciation.
Lately though, the stock has begun to show signs of Distribution and is looking more and more like a 30% correction in the stock price will be in the cards.
This correction does not take anything away from my $60 target for the stock, but it does tell us to buy protective puts as a measure to lock in our profits without selling the stock and still being able to collect the dividend.
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