Recent Buy – TGT, $TGT

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About the buy:

Back in March, I bought 10 Shares of Target Supermarket (TGT) at $57.xx. I wrote that there is a potential for TGT to fall below $50. And I would only buy it if it goes below $50. Well, with the Amazon making a bid for Whole Food Market (WFM), that shed $40B off the groceries stores from WMT, TGT, KR (Recent Buy – Kroger (KR, $KR)) and a bunch more. Including now retail clothing stores like Nordstrom, J.C. Penny. There is no doubt that Amazon is disrupting the groceries market, will change a way some of the city people shop, however, I still think TGT will continue to hold its market share of shoppers and grocers. For that, I’m making another TGT buy to average down to around $53/share. I bought another 10 shares of TGT at $49.xx.

My next target price for TGT is $45. If it falls below that mark, it will be ~50% off from the $79.33 52-week high. 

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In case you missed it, I topped 5-figures income between dividend and rental property income last month. Read the last month report here. But some of you might not realize how much work I actually put into it. So here are some of the update in case you ever want to get into rental property and try to do it yourselves. (Even if you hire a manager, they only collect checks and deposit for you, they will not do any of these chores or making sure these things will be done at the most economic way.)

Landlording update: 

I had another tenant who’s just moved into my other apartment. I’m still looking for his potential roommate. That’s great news.

Not so good news:

  • I had one non-paying tenant, so his portion is $700, so that took a huge cut on this month earning.

Landlording chores:

  • We cleaned up the apartment for the new tenant to move in. Thank you, Mr.W.
  • I had to fix the folding closet. This one is proven to be difficult, as I had to run to 3 different stores trying to find the right part to replace, but it turn of the screw is stripped, and it got tighter. So right now it can hold up, but I still have the spare part just in case.
  • My handy-man didn’t wire the fan correctly, so I had to hire an electrician to re-wire it. ($65 for the service), while riding my bike my seat got loose, so he came to my rescue, and he did re-write the 3-way light switch for free the last time, so it’s a fair price.
  • I’m going to replace 2 bathroom fans, as they are not doing a good job at drying out the bathroom.

Up and coming landloring projects:

  • Re-paint the foundation wall, as some funks graffiti-ed my wall. That a jerk for doing that!! This is the 4-plex near the university. The university is ranked #1 in the country for one of the art program. So naturally, it attracts some artsy people, including the funks?!! I don’t know, but it’s a terrible thing to do to graffiti my wall.
  • Re-paint the railing for the front porch at my rental.
  • Re-paint the front door at the commercial property.
  • Re-paint the back door at the commercial property.
  • Wash and paint the deck at my house.
  • Wash and re-paint the deck at the commercial property.

Vacations coming up:

  • Well, we’re going to bike 52 miles on the bike trail here in the eat coast. It’s one of the longest dedicated trail just for biking. I’m still figuring out the logistics. Making sure we won’t get stranded. We’ve been training hard for this biking tour. So, far we’ve clocked in 130 miles on the first 20 miles of the trails. Mr.W is confident that we’ll finish. I’m still not convinced yet until all the logistics are in place. 🙂
  • I’ve booked the ticket to fly back to the Midwest. We’ll meet up with family to make a road trip to California. It’ll be difficult as it’s going to be a long ride. But we’ll see what happen. I’ll also get to see my rental for the 2nd time, and see the finished project for the first time.

That’s all, folks!

What do you think about TGT at this price? What are your summer plans?

 

 

 

GA

4 Comments

  1. If you ignore the noise in the market about retail and the Amazon-effect this is a very nice buy. I believe TGT still has a place next to the AMZN’s of this world, so its also still on my watchlist.

  2. Everything has been taking a beating this week in the market. Especially those sectors. Amazon is such a big player. Picked up some TGT myself on the first dip a while back. Would like to buy more but I am allocated too heavily on it right now. Still makes for great value at current prices. Nice buy.

  3. I don’t like shopping, but I like shopping at Target 🙂 I’ve dollar cost averaged into a very nice position in TGT with a YOC well over 4%. Wish I could buy more, but my position is full.
    It’s a dividend aristocrat that is up for a come back, can’t go wrong with TGT.

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