On April 29, 2009, I recommend buying shares of Carlisle Companies Inc. (CSL) when the stock was trading around $22.30. Since then, the stock has risen substantially given the time period of the purchase. If you are nervous about the recent rally, I urge you to take profit in this name, as I have done so today at $24.00.
The rally can easily take the Dow to 9,000 but I am not banking on it. Even if the market continue higher, I currently have other positions that will benefit from such move. The risk/reward for Carlisle has changed for me. If you are compel to hold the stock, it would be ok but be prepare mentally for some pull-back.
Carlisle closed today at $24,13. A modest gain of 8.2% in just a few days is not so bad. This is 3x of the dividend rate you would receive as of today closing at 2.6% yield.
The rally can easily take the Dow to 9,000 but I am not banking on it. Even if the market continue higher, I currently have other positions that will benefit from such move. The risk/reward for Carlisle has changed for me. If you are compel to hold the stock, it would be ok but be prepare mentally for some pull-back.
Carlisle closed today at $24,13. A modest gain of 8.2% in just a few days is not so bad. This is 3x of the dividend rate you would receive as of today closing at 2.6% yield.
Although I closed my position, I will continue to monitor Carlisle closely and would like to re-purchase the stock near $22 or 2.8% yield (previous resistance).
A stock can't go up in straight line. Same goes for the market. I am getting defensive as we speak.
Art
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