Sunday, March 4, 2012

Stocks on our Watch List. Part Two


The first part of this list was posted earlier this week. 

MO...Continues to be one of our favorite tobacco stocks, but at a lower price.  Altria has moved up over $30 and now is just below. Continues to reward investors with steady increasing dividends. If price was closer to $26 we would buy. 

PM.,..Another tobacco stock we like. This one is domiciled in Switzerland away from pesky trial lawyers and American government lawsuits so safety is above the domestic tobaccos. Phillip  Morris also sells to China and Japan two very good international markets. However stock is premium priced which it richly deserves. We just like value stocks better. Very nice rising dividend.

POT...We keep Potash in our sights as this Canadian producer of fertilizer stock has been on a tear as Asia diners have gotten wealthier they demand meatier diets that come from animals who eat corn. Corn production enhanced by potash. Great play on agriculture. 

RRD...The largest printer left and continues to consolidate other competitors. Efficient and a good dividend payer we continue to look for an option entry here to make a buck. We do not recommend a long term buy here. 

RSH...Contrarian play on Radio Shack the country's largest tech store chain. This company has been mismanaged so long it is a wonder it is still in business. However the stock has all but hit rock bottom as the stock sells for the cash value of the company and it you are a contrarian now might be a good risk play. We prefer the option route. 

SCCO,,,World's best copper producer and copper is the one way to track the world economy. Almost anything you make tech wise has copper in it. Southern Copper pays a good dividend and it rises and falls with the company's profits. At $30 we like it, at $40 we would not touch it. 

SF...My personal broker Stifel Nicolaus in which I have no inside info. However I keep watching the broker consolidate other smaller brokerages and grow without overpaying for the buys. This stock might finally be on a steady up track and should be considered for purchase on any pullback 

SHLD...I do not like Sears Holdings as a stock or company. But for a options trader this one makes us lick our chops and want to dive in. It has been on a up trend the last week due to some good news after people had given it up for dead after Christmas. Just the real estate it owns gives the company some value and once Eddie Lampert the CEO and Hedge Fund genius finally gets most of the shares bought up through repurchases this one could be sold for some considerable profits for the final shareholders. 

WIN... Windstream Communications is included here because we own it in another account for the dividends and safety. We do not suggest purchase here. 

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