Sold a part of my Roche position

Today I sold 10 shares of Roche at Sfr 231 each – reducing my position from 25 to 15 stocks.

Roche has become too expensive in my opinion. It is a fantastic company to hold but I am getting uncomfortable with the overvaluation.

Roche has Sfr 24.5 bn in debt, Sfr 7.2bn in pension liabilities, and Sfr 4.5 bn in cash. The current market cap is Sfr 196 bn. This puts the EV to sfr 224 bn. At FCF of sfr 4.6 bn, and net income of sfr 9.7 bn the EV/Earning > 22 and EV/FCF > 48 ! The dividend has been growing nicely but at sfr 7.35 per share (which after witholding tax is sfr 4.77); the yield is only 2%.

I am looking into some stocks and will redeploy the cash.

Advertisements

One thought on “Sold a part of my Roche position

  1. Pingback: Monthly update: Apr 2013 | Absolute performance

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s