Value Investing
What stocks are you looking at? Part 1
Well folks, with volatility comes opportunity. The market is now 20% off its highs, which puts it in bear market territory. The 52 week low list gets longer and longer every time the markets has triple digit loses. Over at the magic formula investing website, some quality names are appearing in the screen. Now, if you consider yourself a contrarian value investor, this is a good time to create a list of names that could be potential buys. The headlines might sound as if the world is coming to an end, but we have been here before and the country has pulled together and rebounded.
Below is a list of stocks that I have a.) looked at or b.) currently looking at. As always, due your homework.
DOW Stock at or near 52 Week Lows
American International Group (AIG) - Stay away, I was wrong, management sucks. Firm has lost its culture
American Express (AXP)- Trading at historically low valuations; Buffett might be buying
Boeing (BA)- Cannot produce a plane
Bank of America (BAC)- Again, Buffett might be buying here as he originally started buying at $35?
Citigroup (C)- Who knows how much junk is left in the trunk?
DuPont (DD)- I don’t know much about….
General Electric (GE)- Old Faithful
General Motors (GM)- “I want my MPG…….oooops!”
Home Depot (HD)- Trading at historically low valuations
Intel (INTC)- Outside Circle of Competence
JP Morgan (JPM)- Has one of the best CEO’s
Coca-Cola (KO)- BRAND
3M (MMM)- Great ROE%
Merck (MRK)- Don’t know much, I believe they still have viagra lawsuits….
Microsoft (MSFT)- Don’t Know Much
Pfizer (PFE)- N/A
Proctor and Gamble (PG)- I love and own it at these levels
AT&T (T)- Surprisingly, not much buzz among the college crowd. More buzz surrounding Blackberry ( I have a blackberry myself )
United Technologies (UTX)- Im interested….
Verizon (VZ)- Love their products, hate their customer service
Im also very interested in Exxon (XOM)- The company is priced for $85 oil and estimates appear to be very low. (thanks Daveinhackensack!). Whether we like it or not, Exxon is a cash machine with a credit rating that is better than some countries.
Disclosure: I own PG,
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Tags: AIG, AXP, BA, BAC, C, DD, GE, GM, HD, INTC, JPM, KO, Magic Formula Investing, MMM, MRK, MSFT, PFE, PG, T, UTX, VZ, XOM Discussion
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[...] Part 2 Jul.03, 2008 in Warren Buffett This is the second part on what stocks I am looking at. Part 1 delt with stocks in the DJIA trading at or near 52 week lows. Next, I will look at stocks Warren [...]