Walgreens (NYSE: WAG)
Originally recommended on July 20/09 (IWB #2927) at $29.82. Closed Friday at $42.74 (all figures in U.S. currency).
I recommended America's largest drugstore chain back in July 2009 when it was trading at $29.82. I reiterated my buy rating in December of that year when the stock was trading at $38.81. On Friday it closed at $42.74 for overall gain of 46% based on my original recommendation, including dividends totaling $0.90.
Walgreens had a pretty good month in January with sales increasing by 0.5% but that's down from sales in December and only modestly up from a dismal year ago in January 2010.
I think it's time to ring the register and take profits here. I'm not a big fan of retailers in general otherwise I would likely put a hold rating on the stock but we have had a nice gain and I think the upside is somewhat limited. The stock is trading near its 52-week high and I think there are better places to put your money. I don't hate the stock; I just think it's time to move on.
Action now: Sell for a gain of 46.3%.
Agrium Inc. (TSX, NYSE: AGU)
Originally recommended on April 30/07 (IWB #2717) at C$46.41, US$41.40. Closed Friday at C$92.01, US$93.28.
Agrium was trading on Toronto at C$46.41 and on the NYSE at US$41.40 at the time I recommended the stock in April 2007. After it rose 66%, I suggested taking half profits in September 2010. Since then the stock has continued to skyrocket along with the rest of the fertilizer companies and in fact along with all the rest of the agriculture-based issues. The shares closed Friday at C$92.01, US$93.28 for a total gain of 98.3% in Canadian dollars and 125.3% in U.S. currency.
As readers of my recent columns know, I'm still a big fan of the agricultural trade and I would continue to hold a position in this stock. If you didn't take half profits the last time I suggested it, I would urge you to do so now. There is nothing fundamentally wrong with this company but after a massive gain like this it is prudent to take something off the table. I'm hoping we will get a meaningful pullback in this stock and in Potash Corp. (TSX, NYSE: POT) so I can increase my position but right now the valuations are starting to get a little stretched. Don't get greedy: take some profits.
Action now: Take part profits if you have not already done so, otherwise Hold.
iShares S&P Global Technology Sector Index Fund (NYSE: IXN )
Originally recommended on Nov. 5/07 (IWB #2740) at $69.59. Closed Friday at $66.07 (all figures in U.S. currency).
This basket of global technology stocks includes such names as Apple Inc., Microsoft, IBM, Google, Oracle, Intel, etc. It has done well along with the rest of the tech sector in recent months, rising 22% last year. I suggested this ETF as a good way to play global technology and it has certainly done better than had you simply bought shares in Microsoft or Cisco (but not as well as if you had purchased Apple).
I see this as a good core holding for people who prefer to invest through ETFs. Keep your positions and add to them on any meaningful pullback.
Action now: Hold.
Textainer Group Holdings (NYSE: TGH)
Originally recommended on Nov. 23/09 (IWB #2942) at $15.68. Closed Friday at $35.54 (all figures in U.S. currency).
Textainer, which is based in Bermuda, is the largest shipping container leasing company in the world. It operates globally offices in South America, Europe, the Mediterranean region, the Middle East, Asia, and Africa. The big Singapore office handles Southeast Asia, China, and Australia.
This stock has been a huge winner for us since I recommended it in November 2009 when it was trading at $15.68. I suggested taking half profits last August when it already risen 75% and was trading at the time at $27.52. The company has continued to perform well, closing Friday at $35.54 for a gain of 126.7% since the original recommendation.
On Feb. 10, Textainer released fourth-quarter and year-end results (to Dec. 31) and they were impressive. Net income attributable to common shareholders for the quarter was $40 million ($0.81 a share), which was an increase of $14.7 million, or 58%, compared to $25.3 million for the same period in 2009. For fiscal 2010, the company earned $120 million ($2.43 per share), up 32% from 2009.
The company announced it is passing on some of the profits to shareholders with a dividend increase of 7.4% to $0.29 per quarter ($1.16 a year). The yield going forward based on the current price is 3.3% but readers who bought shares at the time of my original recommendation will enjoy a 7.4% dividend return this year.
Even at current valuations the stock doesn't look too expensive with a trailing p/e ratio of 14.4. As the global economy continues to improve, demand for this company's services should rise along with it so I continue to hold it in my portfolio.
Action now: Hold.
- end Glenn Rogers
Originally recommended on July 20/09 (IWB #2927) at $29.82. Closed Friday at $42.74 (all figures in U.S. currency).
I recommended America's largest drugstore chain back in July 2009 when it was trading at $29.82. I reiterated my buy rating in December of that year when the stock was trading at $38.81. On Friday it closed at $42.74 for overall gain of 46% based on my original recommendation, including dividends totaling $0.90.
Walgreens had a pretty good month in January with sales increasing by 0.5% but that's down from sales in December and only modestly up from a dismal year ago in January 2010.
I think it's time to ring the register and take profits here. I'm not a big fan of retailers in general otherwise I would likely put a hold rating on the stock but we have had a nice gain and I think the upside is somewhat limited. The stock is trading near its 52-week high and I think there are better places to put your money. I don't hate the stock; I just think it's time to move on.
Action now: Sell for a gain of 46.3%.
Agrium Inc. (TSX, NYSE: AGU)
Originally recommended on April 30/07 (IWB #2717) at C$46.41, US$41.40. Closed Friday at C$92.01, US$93.28.
Agrium was trading on Toronto at C$46.41 and on the NYSE at US$41.40 at the time I recommended the stock in April 2007. After it rose 66%, I suggested taking half profits in September 2010. Since then the stock has continued to skyrocket along with the rest of the fertilizer companies and in fact along with all the rest of the agriculture-based issues. The shares closed Friday at C$92.01, US$93.28 for a total gain of 98.3% in Canadian dollars and 125.3% in U.S. currency.
As readers of my recent columns know, I'm still a big fan of the agricultural trade and I would continue to hold a position in this stock. If you didn't take half profits the last time I suggested it, I would urge you to do so now. There is nothing fundamentally wrong with this company but after a massive gain like this it is prudent to take something off the table. I'm hoping we will get a meaningful pullback in this stock and in Potash Corp. (TSX, NYSE: POT) so I can increase my position but right now the valuations are starting to get a little stretched. Don't get greedy: take some profits.
Action now: Take part profits if you have not already done so, otherwise Hold.
iShares S&P Global Technology Sector Index Fund (NYSE: IXN )
Originally recommended on Nov. 5/07 (IWB #2740) at $69.59. Closed Friday at $66.07 (all figures in U.S. currency).
This basket of global technology stocks includes such names as Apple Inc., Microsoft, IBM, Google, Oracle, Intel, etc. It has done well along with the rest of the tech sector in recent months, rising 22% last year. I suggested this ETF as a good way to play global technology and it has certainly done better than had you simply bought shares in Microsoft or Cisco (but not as well as if you had purchased Apple).
I see this as a good core holding for people who prefer to invest through ETFs. Keep your positions and add to them on any meaningful pullback.
Action now: Hold.
Textainer Group Holdings (NYSE: TGH)
Originally recommended on Nov. 23/09 (IWB #2942) at $15.68. Closed Friday at $35.54 (all figures in U.S. currency).
Textainer, which is based in Bermuda, is the largest shipping container leasing company in the world. It operates globally offices in South America, Europe, the Mediterranean region, the Middle East, Asia, and Africa. The big Singapore office handles Southeast Asia, China, and Australia.
This stock has been a huge winner for us since I recommended it in November 2009 when it was trading at $15.68. I suggested taking half profits last August when it already risen 75% and was trading at the time at $27.52. The company has continued to perform well, closing Friday at $35.54 for a gain of 126.7% since the original recommendation.
On Feb. 10, Textainer released fourth-quarter and year-end results (to Dec. 31) and they were impressive. Net income attributable to common shareholders for the quarter was $40 million ($0.81 a share), which was an increase of $14.7 million, or 58%, compared to $25.3 million for the same period in 2009. For fiscal 2010, the company earned $120 million ($2.43 per share), up 32% from 2009.
The company announced it is passing on some of the profits to shareholders with a dividend increase of 7.4% to $0.29 per quarter ($1.16 a year). The yield going forward based on the current price is 3.3% but readers who bought shares at the time of my original recommendation will enjoy a 7.4% dividend return this year.
Even at current valuations the stock doesn't look too expensive with a trailing p/e ratio of 14.4. As the global economy continues to improve, demand for this company's services should rise along with it so I continue to hold it in my portfolio.
Action now: Hold.
- end Glenn Rogers
