On July 17, 2012, we have bought Cimarex (XEC) at the market.
On June 8, 2012 (found here), we outlined our rational for buying XEC based on having good management and a consistent dividend policy. Based on the Altimeter, XEC is considered worth purchasing at $72 and below. At the current price of $56, XEC would have to increase +28% just to get back to the $72 level.
At the quarterly dividend rate of $0.12, we believe that XEC should be sold at a price of $123 or above. This will increase or decrease with the dividend policy. Based on the previous Altimeter buy indications, investors should expect to hold XEC for 2 to 3 years before the next sell signal.
*NOTE: In our earlier transaction alert for UNM (found here), we indicated that we would allocate 10% of our portfolio to the stock. Instead, we have reduced the allocation by half, to 5%, and bought XEC with the other 5%. This allows us to take advantage of two opportunities which we fully expect to add to as the price declines.