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Folks, I'm on the road this week so this will be a short entry.
MDC released an earnings report (ER) a few days ago and the data has finally caught up to my dashboard. Year over year (YoY) growth is down -24% (0.78 vs. 0.59), and YoY revenue growth is down -2% ($736 vs. $724). Any negative YoY value means that the stock will be slated for sell.
The stock went Ex-Div today (2/6) and will pay $0.30 per share if we are on record tomorrow. We own 33 shares so this is $9.90 in dividend income. I want to capture the dividend payment (it's why we invest in dividend stocks) but this has to be weighed against losses when the position is liquidated. The challenge here is that there is no correct answer.
The stop loss floor exit point for MDC is presently 0.99 of the day's low, which is calculated at $28.00 even. It is better to forego the dividend and limit the losses for the exit strategy so I've set a stop loss to sell at $28, active after 9:40 a.m. ET. If the stop loss is never touched we'll collect an extra $9.90 later this month; if the stop loss is touched we'll be out but with limited losses.
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I am still attempting to get into BK, BLK, IP, and LVS as previously stated in my last blog. I've been adjusting the entry point downward each day and because of recent market conditions, none has hit the 1.01% of the previous day's high threshold. The end result is that I'm getting a better price on good stocks. I have nearly $15K in cash in the account that needs to be deployed, and MDC will increase that by another $1K or so, hence I will revisit the preferred alignment later this weekend.
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As with all my ramblings, you are responsible for your own investment decisions and I am not. Please do your own diligence, and please take ownership for your actions.
Regards,
pgd
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