Thursday, July 6, 2017

Recent Buy: General Mills

On July 6, 2017, I bought 18 shares of General Mills on its ex-dividend date at $53.95 per share for a total of $971.10.  This buy will increase my dividends by $35.28 per year for a total of $4560.72.

Rationale

  1. GIS is trading at its 52 weeks low
  2. GIS is trading below its peers in term of PE 
  3. GIS last dividend increase was significantly below its average hinting that a possible merger or acquisition is in the works. There is talk of nestle giving up the cereal business in europe which would open a big opportunity for GIS.
  4. I have done well in the past buying beaten down orphan stocks. Time for another roulette buy. 
  5. Last quarter cereal and yogurt declined but snack bars and ice cream increased. GIS is working towards rebalancing their revenue. Just like KO was hanging around 40 when they worked towards less soda and more other brands, GIS is doing the same. Hopefully I can grab some before the jump. UL had similar issues a while back when it was stuck in the 38s-40s.

thanks for visiting

8 comments:

  1. Love the buy. If GIS continues to remain beaten down I'll consider adding more as well. I have been buying GIS the last few months which is why I started to look for other places to buy but at these levels it's getting very tempting. As you stated, I also love, "buying beaten down orphan stocks."

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    1. hey keith, at this yield and prices it's almost impossible to give up

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  2. Broke Div -

    THAT IS AWESOME! The big average down is smart, I love buying consumer based product companies and this is one that's VERY appealing. They announced a small dividend growth increase, though, thoughts on that?

    -Lanny

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    1. hey lanny, i think the small dividend increase is getting ready for a acquisition.

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  3. GIS looks like a great buy... I need to look into this one! Thanks for sharing and happy investing!

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    1. hey ferdis. GIS is going through tough times but I believe it will overcome eventually. Time to buy GIS and wait for the turnaround. I see GIS a lot stocking frozen food and would love for them to make a move

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  4. Nice Buy BDI. Popular buy among DGI investors and looks like you picked it up on a great day compares to many! Way to go. Best wishes and continued success! AFFJ

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    1. hey affj. thanks for your support. I'm holding this for a long time

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