Many investors don’t know how to react to the uncertainties and stock price drops. This simple process distinguishes stock performance and context to indicate when to act. Let’s use it with Couche-Tard, Equinix, and Starbucks!
You’ll Learn
- Alimentation Couche-Tard saw its price drop by about 10% in a few days in March. Equinix was trading at over $900 in March 2024, now at around $700. Starbucks has had a hard day as of May 1st. Since he’s publicly known for following these stocks, especially Couche-Tard, Mike saw instant questions.
- Every time we see such remarkable stock performance, we must add context before acting. What are the facts for these three companies? What do we know?
- There are also some rules to remember about the market. The first is that the market thinks about the future. How does it apply to our examples?
- Another thing is that compounding works both ways. What examples could Mike give?
- Now that we know more about the context, it is time to see if our investment thesis is still relevant. What’s Mike’s investment thesis for Couche-Tard, Equinix, and Starbucks?
- Then, investors must ask: Does the context around these companies’ performance impact my investment thesis?
- Again, stock price performance is one thing, but 5-year trends can tell us more about a business’s health. What are the financial metrics for ATD, SBUX, and EQIX?
- To conclude this quick analysis, we must ensure that our investment thesis matches the dividend triangle and vice versa. Is this the case for all three?
- Only then should an investor make a decision. Based on what we look at today, would Mike sell, buy, or simply hold on to Couche-Tard, Starbucks, and Equinix?
- We made it clear to investors when they should hold or sell. However, sometimes the answer could be, “Let’s wait a bit more to see what happens.” How much time should we wait?
Define Your Strategy and Invest with Conviction. Download the Portfolio Workbook for free.
Related Content
Before doing Short Selling, Profit Protection, and the Chowder Rule, here’s what to consider.
Short Selling, Profit Protection, Chowder Rule: What You Need to Know [Podcast]
For more details on Alimentation Couche-Tard (ATD.TO) situation, watch the video below!
The Best Dividends to Your Inbox!
Download our Dividend Rock Star List now and do not miss out on the good stuff! Receive our Portfolio Workbook and weekly emails, including our latest podcast episode!
Follow Mike, The Dividend Guy, on:
Have Ideas?
If you have ideas for guests, topics for The Dividend Guy Blog podcast, or simply to say hello, then shoot me an email.
This podcast episode has been provided by Dividend Stocks Rock.
Leave a Reply