Time To Exit Our Food Win

It’s time to sell General Mills (GIS). The stock has been a solid performer for us, gaining 12% in a matter of months, and three quarterly dividends take us closer to 15%.

That’s pretty good in a world where the S&P 500 as a whole normally takes a full year to give shareholders about 10% or 11%. And with GIS struggling against resistance here around my $65 target, I think it’s fairly valued now.

We’ve come as far as we can easily go here. With shares at 16.5X forward earnings, there’s more downside risk than easy upside to capture.

While we could hang on for another dividend in December, that also brings us close to the next earnings report, when a bad number (or simply a bad market mood) could undo months of work.

Don’t let that happen. Sell GIS. Inner Circle subscribers, this means you too.