Hi Friends
Finally I have got some time to blog...Just think of how you would feel if you continuously worked for the last 48 hours with just 6 hours of sleep...pretty tried huh...:-) That’s what I just went through and here I am, after working 24 hours at a stretch writing my blog...:) and it’s about 1AM !!! Yes, the last 2 weeks have been pretty busy at work and I assume the next 2 weeks will be busy as well. So even though I am very very tired and I want to go to bed badly I am still very excited to blog because I always ready to discuss about stocks and the stock market. So my first posting is about a few stocks I owe and why I think others should owe them as well :). Well I have been watching and following these stocks for a long long time. So I feel I can feel their heart beat. I follow them every day and during every spare moment that I have. And with recent free software gadgets I follow them every minute....I get all the latest news and quotes at the click of a button. Anyway, with any further delay here are the 5 stocks that I like for the next 3-6 months.
AAPL: Apple Inc: This has been my darling stock. I have had it for a long time and sold it recently. I rode the economic slowdown in 2008 when the stock dived from $190ish to $78 and from there it has come all the way to 274.07. I sold it at 242! It has beaten street estimates every time it has reported for the last several quarters. And this quarter will be a stellar one as well with iPad and iPhone 4 releases. Even it is at its all time high the stock has some room to grow. I have been waiting for it go to $230. It did go to 230 when the European debt crisis cropped up. But it has come back up quickly. I am waiting to get in again at 240-250 level. Hopefully it will drop or else I will buy it for the short term. In my opinion Apple should hit 300 plus by mid Aug'10.
The second stock I recommend is SBUX or Starbucks. I bought this counter $25 and its 28. I guess it will go to $30. Starbucks has shown great commitment in diversifying their product mix and continues to grow international. They have recently launched instant coffee and several other products. Their Q2 2010 results were stellar with $2.5B in sales, 9% growth year over year, with same store growth of 7%. This is extremely impressive given where they were just 6-9 months ago. On the valuation front, Starbucks PE ratio is at 26 and is trading at around 2x sales, both of which are below their 10 year average. I think this a great stock to buy.
The third stock I want to talk about is AMGN Amgen Inc. I work for Amgen so I know things are getting better at Amgen. Amgen recently got approval a drug (Prolia) which has the potential to add billions of dollars in sales. Studies suggest that the drug is better than competitors at strengthening bones, opening the door to 8 billion dollar Osteoporosis drug market. However, I think stock will have very little upside for the short term. I would recommend buying the stock just before the company announces Q2 earnings. The company will raise its outlook and this should result in atleast $2 gain in a day.
The fourth stock I owe is UNP Union Pacific Corp. It is a railroad company and with the economy improving, demand for goods transportation should increase. Besides it also keeps my portfolio diversified. It is inching towards its 52 week high but still has lots of room to grow!!!
The fifth stock I want to talk about it JWN Nordstorm. From my reading and homework I feel the stock is bound to go $45 before it announces its earnings. With consumer demand increasing and with satisfactory spring sales one should see good return on investment in JWN.
Anyways it is getting very late and I need to crash into my bed. I will add more details about these and other stock in my next postings. I am no Jim Cramer or a professional portfolio manager but I hope you will like my posting. I will provide more details about these and other stocks in case you guys are interested. Also, I would like to hear from you about any stocks you would like to suggest. So that’s it for today.
See you all at class today…its 1:40AM
Unmesh
I wish I had bought Apple stock back in 1996-7 when everyone thought Apple was very weak, which it was at the time. Oh well. I'm glad they are still around doing very well. My wife and I own 2 Powerbooks, 1 MacBook and 1 iMac in addition to several iPods (love my iPod Nano). I would like to look into buying some Starbucks stock (I am a very customer) in addition to some Apple stock if the price goes down.
ReplyDeleteGreat post!!!! With your current workload I hope you like coffee. Coffee has assisted me through many 24 hour days.
ReplyDeleteI prefer to follow Fortune and CNN's recommended list and made some good money in the last few years. Check this out for the latest:
ReplyDeletehttp://money.cnn.com/galleries/2009/pf/0912/gallery.best_stocks_2010.fortune/index.html