Cypress Dividend Increase Merits Consideration
Kyle is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Progress Report: Wells Fargo (NYSE: WFC), mentioned 1/4/12 around $28 per share, currently trading around $34 (intraday 3/20/12). Cypress Semiconductor (NASDAQ: CY), mentioned 1/13/12 around $17 per share, currently trading around $15-$16 (intraday, 3/20/12).
There are times prior to making a trade, when I am cramming as though I were trying to nail down the last few vital pieces of information just before a final exam, and I start to question whether I actually “know” anything at all. I am sure more than a few have experienced it from time to time, especially when it involves risking a significant amount of money.
There are regions in my twisted brain that are actually adept at data mining, even to the point where I am completely capable of explaining my own reasons for entering a position with a stock or adding to a position on signs of relative weakness. Rather than weigh down my eloquent prose with price-to-earnings ratios and balance sheet numbers that express any sort of argument for any stock in particular, I choose to take a more parental stance and offer my thoughts and opinions, just as everyone else does. So I do it rather differently than most, much like when as kids we quizzically asked our parents why something was the way it was, we heard, rather programmatically, “Go look it up.”
There is a certain power that comes with knowledge and quite even more, I feel, when we are armed with the wherewithal to know where to find that knowledge we so desperately seek. I have never suggested that anyone follow my madcap trading techniques, I have merely put thoughts, ideas and opinions on paper, in a much more creative way than others. Ultimately, the onus is placed on each and every one of us to locate a suitable spot for our hard-earned dollars. I would never suggest that anyone blindly follow what any screaming head on the TV mentioned and I feel the same sentiment when I type a company’s name in boldface.
When I read that Cypress Semiconductor was increasing their quarterly dividend payout to loyal shareholders, to 11 cents per share, bringing the current yield to 2.76%, I started looking through my giant stack of holdings in an attempt to locate a spot to take some profits with one of my “winners” and start my long grind with the company. The problem I have is that I am currently wooing several other companies I cannot mention due to my overwhelmingly creative writing style and lack of financial analysis.
Theoretically, had I entered a sizable position with Wells Fargo at the time I mentioned it and eyeballing the 20% move in a positive direction, this would be a spot for consideration to move that amount of profit and put it to work elsewhere. If I had an interest in one of Buffett’s banks of choice, I would not close the position, just skim some cream off the top and seek potentially better returns with something that research would suggest is poised to make a move similar to what Wells Fargo has done thus far in 2012.
For the dozens of you that have been waiting for some delicious drippings from my home-trading mind, I have been somewhat apprehensive to do just that, for my own personal reasons. Suffice it to say, there are more mentions in green than in red throughout my posts, not blowing my own horn, it is what it is. But the same could be said for numerous stocks this year, after being “beaten down” in 2011, we were pretty ripe for some positive moves for a decent number of companies.
It has been taught, and passed on in a number of my posts, that for every single stock you own, a minimum of one hour per week should be invested doing research. I cannot stress that enough, and a substantial amount of additional time should be dedicated, relative to the size of the position of those holdings in your portfolio. These aren’t your children, it’s perfectly normal to play favorites and spend a little more time with those that take up more room in your “house”. For those of you that have taken the time to follow that line of thinking, keep it up, and for those that have taken the time to read my words, I truly appreciate it.
Motley Fool blogger Kyle Metivier has no position in any of the companies mentioned.