We executed the following transaction(s):
On January 13, 2017:
-
Sold Sysco Corp. (SYY) for a +43% gain in 21 months (excluding dividends)
-
Sold Helmerich and Payne (HP) for a +74% gain in one year (excluding dividends)
-
Bought VF Corp. (VFC) with a 4.67% position in portfolio
Sysco Corp. (SYY) was getting long in the tooth as pointed out by one of our subscribers. Meanwhile, Helmerich and Payne (HP) probably could go higher but we have what we believe are alternatives waiting in the wings. One alternative is VF Corp. (VFC). Let’s run though our brief take on the topic of VFC:
The Altimeter for VFC is amazing, as it suggests that, while there is some downside risk, consideration of VFC at this time is in line with three other periods in the past.
What we like most about the Altimeter is the fact that it goes back in time to 1985 with consistent levels to consider buying and selling. Naturally, 2008 provided extremes to the downside and as Charles Dow talks of a pendulum swinging from one extreme to another, so too did VFC go to extremes on the upside in 2014. We may get another extreme to the downside, be on the lookout.
The Speed Resistance Lines (SRL) are a little less exciting than the Altimeter.
The SRL indicates that VFC should decline at least to the $47 level or another 8%-10%. Once falling to the ascending $41.13 level, we could only expect that a $42-$40 price point is in the cards for VFC. All that being said (the stock will fall further), we see VFC as an ideal three stage purchase as the price declines.