If it Walks like a Duck and Quacks like a Duck ...
Aflac is a Top-25 Purple Chip and through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance products. The popular AFLAC duck has the flu. We identified a low valuation in AFL at $41.00 on May 17, 2012, since then the shares have traded as high as $55. We are exiting at this stage and locking in a total of 29.3% total return (including dividends) over the period.
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AFL posted first downward quarterly earnings in 20 years. Our target was $63 but following the latest earnings report, we believe it would be wise to cash in and deploy our funds in another low valuation opportunity. The shares may rise further but the latest decline in earnings is a sign that the company may be facing headwinds that could lead the shares to lower valuations.
RAISE CASH, EXIT AFLAC ABOVE $USD 51 (AFL-US, $USD 52.00)
