Sunday, November 24, 2013

A Review of the CDW Holding Trading Idea

I had posted a trading idea on CDW Holding on April 25, 2013.

The trading idea was

"14 cents is a fair price to pay for CDW, however, due to momentum, it may head to 16.5 to 19 cents within a year's time.

I expect some yield compression to drive this."

Looking at the chart it took only four months instead of a year.

The stock hit 16.8 on 16th August (nice symmetry there), so, part one has come true.

Ideally, you should have sold it when you get your price target. That is a nice 17% return for 4 months.

The stock has now slipped back to 15 cents.

A second run is not unlikely, but improbable.

Let us wait and watch if the dividend is 0.8 - 0.9 cents