Recent Sell – DEO

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DEO is the only “sin” stock that I have (had) on my taxable account. I bought it a few years ago, thinking it was going to do well:

  1. The Euro was dropping like flies, whenever the Euro recover, the stock price would recover
  2. As the US economy recover, people would take more vacation, drink more, celebrate more. The drink when they are happy, they drink when they are sad. Ah… people!

Well, the entry point was $115. I average down to $113. Sold $130. Pocket ~$200, the yield for the past few years gave me a profit of $350 or so. No too bad!

Really, as Puerto Rico get hit by hurricane Maria. I need to raise some cash in case there is a buy opportunity. This year, my account is in RED, pretty much everything I have is in red. hihii… I don’t want to take a loss. I’ve had DEO for over 1 year, so I only have to take 15% capital gain instead of my regular tax. So, for that I think it’s an okay sell. Although, I think DEO can go to $150 or even $200 in just another year or so.

Have you made any sells lately?

GA

2 Comments

  1. Not a bad return and your reasoning was solid and you locked in the October dividend. But I think there’s something a little weird going on in that space (besides currency fluctuations). DEO’s earnings call said results would be back-loaded this year. Perhaps they’re looking for a stronger dollar? FMX sold a chunk of their Heineken stake (HEINY/HKHHY) this week as well.

    Never apologize for booking a profit. I’ve had three sells this year (other than mergers). One (UL) booking a profit, one (LB) to offset with a tax loss, and one (TIS) with a dividend suspension.

    • Wow! I didn’t think about the ex-dividend date when I traded. But I’m glad you pointed that out, I’ll be looking forward to the dividend and future sells.

      I’ve just thought about this, the alcohol sales for cruises, Caribbean islands resorts and bars sales has to at least accountable for 1-3% of overall sales? If not more! As st Martin is looking at a total rebuilt and St. John is pretty much gone, now st croix. We don’t drink alcohol, but we know for the fact that people go to the Caribbean for their cheap and loosely law on alcohol beverages.

      I agree with you that the CEO’s words are a bit fishy, the fed has kept the interest rates the same, the dollars shouldn’t be strengthening just yet.

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