I always like watching a good short squeeze, especially when I’m on the long end of it. This week I’ve gotten most of my entertainment from what looks like the start of a short squeeze in Herbal Life. I’m long HLF, but hopefully not for long. I think I need to start thinking about en exit strategy because this is one of the few stocks in my portfolio that I’m in more for the value than for the dividend. I don’t think it will be undervalued for long.
What do you think of Herbal Life? I think fair value for this stock is around $60/share. The 3% dividend yield and the upcoming share buybacks don’t hurt. The 30 years of company history are nice. And the fact that Carl Ichan is now in there fighting back against the unwarranted attacks of Bill Ackman give me hope that this stock is as undervalued as I think it is. Only time will tell.
Here are a few investment and finance related posts I’ve been reading this week:
The Dividend Guy gives a breakdown of the sell in May theory. It turns out that the market doesn’t go down every May. Its best to stay long term and avoid trying to time the market.
The Dividend Ninja is featuring a post from Donald Dony that covers technical analysis on a Telecom, REIT and energy play. I’m long COP and I think it has more room to run that Donald does.
Dividend Growth Stock Investing does a deep dive on Kimberly-Clark’s dividend fundamentals. We both agree that the stock is trading a to high of a valuation to make a move on it now.
Financially Integrated got a chance to read The Millionaire Next Door. Its such a classic book and I love hearing other people’s takeaways.
The 1500s had an Awesome April. Their portfolio is now at $672k. Nice work. Its about time Apple got its act together.
Did you get a tax refund this year? I didn’t, I owed a little. I don’t like the government holding on to my money all year. Million Dollar Journey has 7 ways to spend your tax refund. I say invest it, of course.
Matt Krantz shows us how much to invest to pay for college. His numbers give further support to my article about paying for college with dividend income.