Once-great blue chips at deep discounts: turnaround catalysts + dividend income
Fallen Blue Chip Value
| Symbol | Action | Vol | Stop Loss | Take Profit | Size | Links |
|---|---|---|---|---|---|---|
| PFE | BUY | 25% | 14.5% below entry | 10.3% above entry | 4.9% | TVYH |
| MDT | BUY | 20% | 12.0% below entry | 8.5% above entry | 5.9% | TVYH |
This strategy has moderate long-term potential but requires monitoring. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -30% drawdown to return 25% long-term. - Exit rule: Exit if free cash flow turns negative for 2 quarters — value trap confirmed.