Friday, July 29, 2011

Political Tug of War

While our elected officials in Washington wage a "Political Tug of War" we see our savings and investments deteriorate. The markets react to the fateful statements and predictions we hear from the politicians and in the news.

This is a time when a vast majority of investors and not so wise advisers seek safety outside of the stock market. I say go against the grain.

If we can weather these dismal times and events, we could see an improvement in the markets. Sure, this turn around will take several months and perhaps one to two years to develop but I believe that it is too late to try to save what is left of our investments. Stay put, no time to panic.

My guess is that, at the eleventh hour, there will be a compromise in Capital Hill on the debt. Let's just hope that no long lasting and permanent damage was inflicted to our economy.

Thursday, July 28, 2011

Better Late Than Never, Goldman Sachs Likes CSCO

Today Goldman Sachs raised its 12-month price target on Cisco Systems by 34% to $21. On these news, CSCO jumped almost 3% this morning to 16.15.

Welcome news.

Keeping Track

Past performances and current holdings mentioned in this blog can be viewed and tracked at the following link:

Monday, July 18, 2011

Abandon the AVT Ship!

We have held our expectations a bit high for an early choice, Avnet Inc. (AVT).

Caught our eye on 6/5/08 at 30.33.
Resurfaced on our watch list on 10/17/10 for a chance to lower the average cost and buy it at 27.63. Overall, the average cost was 28.98.

Stock action for AVT has been less than desirable. I say, let's drop it and call it even.

Technically, the stock price has deteriorated from the highs on 5/12/11 of 38.00; at this point, trading at 28.91 I see no support level until it reaches 22.50, a possible scenario.

Wednesday, July 13, 2011

Does GM have Enough Power and Momentum to Climb the Hill?

After many years of turmoil in the auto industry, emerging from bankruptcy and reissuing new stock in mid November '10; General Motors (GM) could be a buy candidate for the longer term.

These are some of the interesting signs:

1. Early developing chart with a possible upside-down head and shoulders pattern.
2. Recent break up above the 50 dma.
3. Price support at about 28.60, limiting the downside exposure.
4. Excellent average daily volume of about 14.3 million shares.
5. Estimated earnings continuing to climb.
6. Forward P/E ratio is estimated around the low 6's.
7. Number of funds owning GM has increased over the last 3 quarters.
8. Price well under the recent IPO (33.00).
9. A public push to "buy American".

Trading at this time at 30.84, GM is worth keeping an eye on.