Investor's Opinion

Portfolio Update: Added to an Existing Position

Published: 2013-08-13 01:08:00 EDT by Unknown

On Monday, August 12th, I added to my existing position of T. My reason for that was because I believe the price to be in the right range for a purchase. Here is how I came to that conclusion.

Fundamentally T is a top rated telecom with high growth, EPS, and revenue with the expectation of continued growth in the coming years. In addition, it has a very attractive yield that, at the time of this post, was above 5%.

The stock has pulled back more than 10% from its 52-week high of 39 USD made on April 23rd. The stock has also created two short term tops on June 13th and July 17th, putting a resistance just below 36.50 USD. At the same time the stocks price has approached and seems to be bouncing away from the upward trend line I charted for it from January 18th through June 21st. As far as other technical indicators, the daily and weekly stochastic and MACD indicators (which are trailing and confirmation indicators) both show that the stock is becoming oversold. Instead of waiting for confirmation, I chose to pull the trigger now for what I think is the lowest price I will possibly get this time around.

Not having a lot of excess cash available I purchased all that I could. It is my belief that this should turn out to be one of my better timed purchases. If not, I still plan on buying more if more funds become available and T remains in this setup. That's my opinion. What's yours? Disclaimer: See bottom of page.

EPS - earnings per share
MACD - moving average convergence divergence
T - AT&T Inc
USD - United States Dollar

Labels: 52-week high, stock picks, stock strategies, trade terminology in use

Updated: 2013-08-13 01:08:47 EDT