On 31 May 2017 the long position in TSCO has been closed at USD 54.02 due to reaching the stop loss level. The realized 1-week profit before any taxes and fees is 1.92%.
As we all know from Ocean’s trilogy, playing a story once again is probably not the best. In case of Tractor Supply Co. this feeling has been underlined by different segment and company specific factors as well:
- The outlook of the classic US retail players have been weakened mainly due to the increasing dominance of e-commerce business models. Year-to-date number on retail store closures is already outpacing that of 2008 (year of latest recession in the States) and appr. 2,880 have been announced so far this year according to Credit Suisse.
- TSCO’s share price dropped significantly and its valuation (and its expected dividend yield) is far more expensive compared to its peers.
Historical share price performance of Tractor Supply Company, source: Yahoo Finance
On the other hand the low-debt company could offer some locked in potential. Based on the analysts’ consensus the long-term growth prospects remain roboust despite the disappointing quarterly performance and the 12m projected share price might offer more than 20% return.
Considering all these pros and cons a new long position in TSCO has been opened at USD 53 on 24 May 2017.
On 30 December 2016 the long position in Tractor Supply Company has been closed at USD 75.41. The realized profit before any taxes and fees is 10.1% (not annualized).
On 12 November 2016 Amgen position (previous post) has been stopped out at USD 146.09. The realized profit is 4.65% before any taxes and fees.
3-year share price development of Amgen (USD)
On 2 November 2016 long position opened in Amgen at USD 139.6. Main underlying characteristics of the investment decision:
- recent share price drop pushed the stock price into oversold territory, but majority of the brokerage firms has buy or hold recommendation
- key global leading biotech player
- as an important result of its ongoing restructuring plan, in the future increase in margin is expected
On 30 September 2016 Costco (ISIN: US22160K1051) position has been stopped out at USD 153.30, the realized minor return of 1.46% (unannualized) covered the trading fees.
On 14 September 2016 long position opened in Tractor Supply Co. at USD 68.49. The most important factor supported the investment decision is the oversold feautre of the stock. In addition majority of the analyst’s universe announced buy or hold recommendation. It offers sligthly more than 1% dividend yield.
The company (established in 1938) is a leading US retailer that offers products for agriculture and home development. It reported net income for 2015 over USD 400 mn.