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My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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TRADE #33 - Buy FDP 148s @ $25.94 in Roth IRA



I bought 148 shares of FDP in Fidelity Roth IRA account at a price of $25.94 with $14.95 commission. Total cost per share is $26.04. Target price set at $40.

FDP is very attractive in a number of ways:

- It's a reputable brand. I buy its banana almost every time i go to grocery store.
- Strong cash flow: 2002 FCF = $3.47/share. Price/FCF = 7.48.
- Strong earning: 2003 P/E = 6.86; 2004 forward P/E = 6.44.
- Very small amount of debt: debt/equity = 0.04; the company consistently paid off debt in the last few years. Book Value = $16.14/share.

I bought it using all remaining cash balance in the Roth IRA account (thus the 148 shares). I expect to add positions in the future (most likely in January after I contribute more $$ to Roth IRA accounts).

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