It's a Target Price for a Reason
In this market, diligence to your instinct will save you far more often than it hurts you, writes MoneyShow's Jim Jubak, also of Jubak's Picks.
This is a tough one.
The stock traded at $70.35 as of 1:45 p.m. New York time on February 6. That’s a 1.03% gain on this position in a little less than five months.
In my January 25 post on trading strategies for a momentum market, I noted that it’s important to keep notes in your trading diary on how aggressive you think your assumptions were when you set an initial target price for a stock. I used Nestle as an example.
My original assumptions, I felt then, were pretty aggressive back in September. That suggests to me that I shouldn’t just go ahead and raise the target price just to keep this position. This says “sell” to me here.
The only caveat is that Nestle pays its 3% dividend just once a year, a few days after the annual meeting.