Coles – Take Profit

Earlier this month we recommended buying Coles Group at $11.25. With the stock now trading $12.00 + we consider this an opportunity to lock-in profit.

Coles offers limited earnings growth and the rally in the stock price has been supported by lower global interest rates, rather than company specific news.

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Alternatively, investors who wish to hold the stock, may consider selling at the money call options to enhance the income return.

 

 

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