Time To Give Your B&G Foods Position a Healthy Diet

I bought B & G Foods (BGF) early in 2005 as part of an income play at around $15. When the price fell I continued to accumulate it. For a while I thought I was a victim of that rookie trader strategy of "Averaging Down." I had a fundamental and long term interest in the stock, did not buy beyond my personal limits and yesterday at $19, I had to sell.

[A little trading tip, don't use round numbers when trading, that's a sucker's game every specialist likes to take advantage of. I put my limit price in at $18.99 and sold there.]

At a forward p/e of 15, it's time to lighten up on B & G Foods - maker of syrups, Emeril's Original, Ortega Chile and other branded food staples. After all, this is an Enhanced Income Security, not a straight equity. I think that the management is good and I like the incentives in the contract they have to increase dividends. But the upside is not here for holders like it would be for a regular equity. I am not selling all my position, just lightening up a bit.

BGF 1-yr chart:

Disclosure: I own B & G Foods Inc for both my IRA, Taxable Account, and my relatives' accounts. At a price of $19 I may either sell more or hold what I have depending on my research. The B & G I sold was for my personal taxable account, I have not sold for any other accounts just now.

Disclaimer: Nothing in this web log is meant to be a recommendation to buy or sell.

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