Tom Reese/Paul Rubillo, Dividend.com
Today, we’re following up on a stock we removed from our ''Recommended'' list not too long ago. Vacuum and heat transfer equipment maker Graham Corp (GHM) was a big winner from when we originally recommended it back in early June.
The stock seemed to top out in mid August, as the rest of the commodity plays were making their last exhaustive run-up. We decided that it was time to take shares off the recommended list on Aug. 25 at the $98.35 level. We didn’t sell it at the high, which was about $110, but such is to be expected. Investors should always remember that buying at the exact bottom and selling at the exact top is an impossible game.
The Bottom Line
We knew that long-term investors were concerned that we didn’t hold GHM for a long enough amount of time. We always stress that we will not hesitate to remove names from our ''Recommended'' list if we anticipate stock movement that could harm investors’ gains. As for where Graham Corp is at now, last night’s close was $73.23. Investors should be glad to see we didn’t recommend overstaying our welcome in this name.
Indeed, some of the dividend-paying names we recommend are not ''traditional'' dividend stocks. Names like Graham Corp may have low yields and high momentum, but we always treat them accordingly.
Graham Corp (GHM) is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.3 out of 5 stars.
Tom Reese and Paul Rubillo are senior editors at Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news and analysis, including ''Best Dividend Stocks,'' as well as a detailed explanation of the Dividend.com ratings system.
