Tapping TAP to Buy AGU
Courtesy of Paul Price
The quick run up in Molson-Coors (TAP) prompted me to lock in a gain for Market Shadow's Virtual Value Portfolio. I sold our shares of TAP at $52.88.
TAP was purchased on Nov. 19, 2012 for $40.15 per share. We gained 31.7% over about 4.5 months (plus two 32-cent quarterly dividends). The portfolio’s total return on Molson-Coors was 33.3%.
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We used some of our sales proceeds to buy 32 shares of fertilizer company Agrium (AGU) @ $94.90 per share. Our $3,036.80 purchase will be reflected as a new long position. Agrium is now trading near a 6-month low despite posting excellent numbers.
At our purchase price AGU pays a 2.1% current yield and sells for less than 10x last year’s earnings. The stock was $115.31 as recently as late January this year.
