We continue to find this market fully valued, but still expect the bias to be upward. Financial engineering and stock buy backs place a floor under the market that makes going down short lived as noted in the most recent small sell off. Placing assets in large and mega cap funds is the intelligent choice here and we believe going forward for 2 to 5 years. There are few obvious value choice stocks left, so we continue to find safe choices to trade in case some new government policy or corporate mistake takes a toll on an individual stock choice.
AAPL...Our largest trading position, however the price is reaching a current zenith and we lightened up a bit. We still believe there is a floor underneath this stock with the impending new iphones and the addiction these owners have to the need for buying any upgrade. Still a low double digit PE too. Best wait until the stock eases back below $100 before adding back shares.
CHL... We currently own China Mobile but will not renew our options when they expire soon. This stock has moved up $15 in the last month and we now believe it to be fully valued and with it being domiciled in China there is now concern to future valuations. $60 per share seems rich to us now.
HFC...Holly Frontier refining margins have shrunk and we are also considering dumping the stock at the end of our option ownership. Refiners were hit hard by the recent federal decision to allow some oil exports. We like HFC in the low $40's.
IBM...We still like this tech company at a low PE and some floor in the valuation. Does not hurt that Warren Buffet owns it too. At $190 per share it is fully valued however for current earnings.
JPM... We continue to like this large cap bank with low PE and lots of future potential. Buying in the low $50's has been rewarding so far.
MET... We are reassessing our ownership in this large insurance company. But frankly the appeal of future profits in the low PE valued stock is enticing. Once the company is past the decision of being too big to fail by the Feds it will stabilize and likely move up past our $50 strike price.
PRU...We continue to like this insurance stock. It is righted it's ship and is showing significant upside going forward. Priced right at a single PE too. We got it at $80.
SF...We continue to make significant money in this little known but fast growing financial company. No reason to sell it now. Strike price for us is $40.
SHLD.. Only the brave need to continue to trade Sears. We continue to be brave all be it with a good wide trade and on a short month long lease. But the profits are so enticing. We have traded it down to the low $30's and will continue to do so.
SO..As we watch the market move to full value we like to go back and pick up steady eddie's like Southern Company and will do so at $41.
T...AT&T has sold off a good bit and that makes it more interesting here near $34 for long term profits and most importantly have little downside from this price.
VZ...The largest telecom in the US make for good trades, good price action, and good night's sleep as well.
NNC...Our longest long position currently. We added another 10% plus in August.
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