Friday, May 13, 2011

RSY XXXVI: Are You Getting 100%? More TOT{al} to RSY.

As the title asks, "Are You Getting 100%?"-- of Total. On the other hand, TOTAL S.A. (TOTAL) has been taking it on the chin from nearly $64.5 recently to a low today below $57 even though their next ex-dividend date is quickly approaching on May 18th with a sizable dividend of $1.577 per share. Although oil prices are sagging somewhat lately, it is still maintaining above average prices at close to $100/barrel. And TOT has not stopped venturing into all energy sources including taking majority stake in SunPower that "designs, manufactures and markets high-performance solar electric power technologies." Sabrient recently upgraded TOT from Buy to StrongBuy.

Overall, there seems to be no reason to back away from this long-term investment. Since there is nothing to discourage our faith in the company and even one commentator has recently labeled TOT as the Perfect Safe Haven, then RSY is recommending adding more to the current recommended position of 100 shares with 100 more (based on $100,000 portfolio). RSY recommends a limit order at $57.51 good for the day. You may want to adjust that price if it does not trade in the opening minutes.

This may turn out to be a short-term trade. Having multiple lots does provide more flexibility to hedge and trade with swing movements.

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