RY - Royal Bank of Canada

[davidw03]

First off -- I'm a pretty novice investor so I could use some advice...

I bought RY in late Jan at 77.56 on Cramer's tip that it could take off if Conservatives won the Canadian election. Well -- they did, and it did. It's currently at 86.27 (on today's news that it has declared a dividend).

Since I'm only holding 25 shares and the dividend won't do me much good, should I consider selling while its hot?

Thanks in advance.

[stockviper]

If it was me I'd place a stop order around $85.00 to protect my gains and hold on. I like round numbers 80, 85, 90, etc. (as I can usually figure the stock value in my head quickly).

The dividend is a bonus. Watch the dividend date though if it's a nice chunk of change as you don't want to sell out on 1 bad day and lose the chance at the dividend.

[bobwatford123]

I'm Canadian, and I think what Cramer was referring to was that if the Conservatives got into power it would clear the way for bank mergers....but as it is a minority government bank mergers will still likely not happen. I do think I heard that Royal also announced a 2 for 1 split so you would have 50 shares after that if that matters to you.
I don't think there is a huge rush to sell, and I don't think you should hold out for the dividend either....it wont be enough to worry about. The split should be the main thing on your mind, whatever it means to you.

[davidw03]

Thanks for the feedback guys. I guess I'll just hang on.

If it does in fact split, what would that do to the stop order I placed at 85?

[bobwatford123]

"Shareholders of record as at the close of business on March 27, 2006, will be entitled to receive the stock dividend on the payment date of April 6, 2006. Registered shareholders will be mailed share certificates representing the stock dividend starting April 6, 2006. Non-registered shareholders' brokerage accounts will be credited for the additional shares representing the stock dividend on or about the payment date."

"RBC's common shares are expected to begin trading on a post-stock dividend basis on the Toronto and Swiss Stock Exchanges on March 23, 2006, and on the New York Stock Exchange on April 7, 2006."

Those are two excerpts from the news release I read. Not sure why there is a different date for trading post split on the NY exchange. I don't think I would have a stop loss any time in that area just in case something gets screwed up. Good luck.

[bobwatford123]

If I could make a suggestion, putting a stop so close to what it is trading at is basically just like putting in a sell order. It's just too close and will likely be taken out at some point. If you insist on putting a stop loss so close you may as well just put in a market sell order and get it over with.

[madcowdisease]

I did the same thing on his recommendation. Don't have the exact date right now but I bought it on the eve of the election. A Canadian board I subscribe to, unrelated to stocks, concluded unanimously that the conservatives would win. I was hoping for a larger move given Cramer's past recommendations. I think I'm going to get out now that it is up. This market has been tricky and any gain is a precious one lately. I too agree that this may just be momentum. I doubt the conservatives can exact the change they want without a majority. Consequently, I'm getting out while the gettin' is good.