Sell Suburban Propane (SPH)

02/12/2010 3:32 pm EST


Jim Jubak

Founder and Editor,

I’ve got to sell something out of the Dividend Income portfolio today to make room for my buy of Telkom Indonesia. After Suburban Propane (SPH) announced a 34 cent a share earnings miss on February 4 the choice is pretty easy.

Revenues, which fell 17% from the December quarter of 2008, also missed analyst projections. By volume propane sales fell 9%. Some of that was due to warmer than average weather but the biggest part of the decline came in the non-residential sector where the slow economy ate into volumes.

I added this stock to the Dividend Income portfolio on December 9, 2008 at a price of $28.61. I’m selling today at $44.95 for a gain in price of 57.11%. With dividends the total return in a little more than a year came to 71%. (That's what getting the timing on 60% plus rally that began in March 2009 even vaguely right (just luck, I'd be the first to admit in this case) will do for returns.
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