The time has finally come to issue a SELL recommendation for Clorox (CLX). The stock has performed moderately since the Research recommendation was issued on March 31, 2008. This company may be poised to reach the $72.80 level or Valueline’s cashflow mean of 16x. However, the returns that this stock has provided in the last six months say that it is worthwhile considering alternatives.CLX was recommended when it was trading at $56.64. As of the close of market on Friday September 5, 2008 CLX was quoted at $62.55. This equals a return of 10.43% in five or six months. Conservatively, on an annualized basis this would equal approximately 20% return. Selling this stock now also generates a return twice the amount of the dividend yield if the stock was held for a whole year.
It is always recommended that when selling a stock, one should not place an order after hours or when the market is closed. This leaves the seller in the position of being vulnerable to the whims of the market makers. Instead, place your sell orders only as a market order during market hours. Some would complain that a market order during market hours might leave some profits on the table. However, I would rather leave some money on the table rather than have it taken away from me by the trades that are placed by institutions and market makers. Touc.
It is always recommended that when selling a stock, one should not place an order after hours or when the market is closed. This leaves the seller in the position of being vulnerable to the whims of the market makers. Instead, place your sell orders only as a market order during market hours. Some would complain that a market order during market hours might leave some profits on the table. However, I would rather leave some money on the table rather than have it taken away from me by the trades that are placed by institutions and market makers. Touc.
