Transaction Alert: Bought CRR and EXPD at the Market

  • We have taken a 5% position in Carbo Ceramics (CRR) at the average price of $65.02.
  • We have taken a 5% position in Expeditors International (EXPD) at the average price of $36.28.

Carbo Ceramics (CRR) has been mentioned by us on several occasions.  CRR first appeared on our February 10, 2012 U.S. Dividend Watch List (found here) and was trading at $85.94.  An Altimeter was run on CRR which indicated that the stock would be undervalued at $62.40 (found here).  However, as CRR has experienced a dividend increase of 12.5% since our May 28, 2012 Altimeter, the stock is now considered undervalued at $70.  While we do expect approximately 20% downside risk from the current price, we are comfortable with adding to our position when such a decline takes place.

Expeditors International of Washington (EXPD) is a stock that we have a history with.  We initially bought EXPD on September 9, 2011 in all of our accounts.  When the stock achieved an +11% gain we sold the principal in our tax deferred accounts while our taxable partnership account held on to the shares.  We are now buying an equal number of shares that were originally bought in the partnership account.  Additionally, we are adding to our existing shares of EXPD (profit portion) in the tax deferred accounts.

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