Thursday, September 16, 2010

Being Patient With Covidien

We noticed Covidien (COV) at 36.05 on June 13, 2009. Since then, it had a good run and hovered at the 52.00 level between January 20 and April 20 of this year. Not bad, if you chose to sell; but we are not going to talk about "what could have been". If you are still holding on to the stock, all you have to show is about 1.9% in dividends plus a 5.1% gain in stock value, that is still alright in this day and age.

Yesterday COV's stock price touched the 50 day moving average at 38.27 and closing just below it at 37.90, I expect the move in the next two days to be up and break above that line, if so, we can see a sharp increase in price in the following week or two. Good time to buy again or increase our long position in Covidien.
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