DGI Adventure – 10-21-2015 Limit Order Executed – Fastenal Company (FAST) – $36.85/share

On Sunday night (10/18/15) I finally decided to pull
the trigger
on FAST before the ex-dividend date comes around on Friday. My
LOL (limit order logic) for a $36.75 share price was, as usual, a total WAG (wild-ass
guess).

It got really close on Monday (intraday low of $36.80). Then
there was some goofy bullshit after hours with another dip to open Tuesday,
close again but no cigar. Then it proceeded to rally and ended up closing flat
around $37.

I was a little worried the order wouldn’t be filled because
the damn stock price was just hovering around $37. That happens to be right on
the cusp of a 3% yield, so maybe there’s buying support there? Who knows…

Well to give myself slightly better odds I raised the limit
order by ten cents to $36.85 a share. And what happened? The price dipped to an
intraday low of $36.69 this morning before coming back up to bounce around $37 again.

A 5 day chart:

image

FAST – 5 day chart as of 10/21/15 (Chart from Yahoo Finance)

Coulda shoulda woulda I guess. Looks like the original LOL
wasn’t a terrible guess, and I should have rode it out…would have saved $0.10
per share (that’s $4.00 on 40 shares).

I have a sneaking suspicion that FAST has a little more
downside left in it. But I wanted to get in on this quarter’s dividend while it
is over a 3% yield.

How much downside? I have no idea. Would it have been worth
setting a more aggressive limit order, and not budging as the ex-dividend date
passes on Friday? Maybe. Time will tell.

As long as I stick to my DGR margin of safety, I should feel
good about the price I’m paying for whatever the yield is. If there’s some more
downside over the next quarter, I’ll consider averaging down.  

If I really want to play “what if”, I could kick myself for
not making the decision to buy FAST a month ago and setting a more aggressive
yet retroactively perfect limit order to get in on October 1st ($35.50
close, $35.17 intraday low…)

Thou can’t time the market so thou shall not try to.

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