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re: So in this age of overvalued stocks, name some undervalued ones you see.

Posted on 7/23/13 at 11:29 am to
Posted by fishfighter
RIP
Member since Apr 2008
40026 posts
Posted on 7/23/13 at 11:29 am to
Myself, I been sitting on the side line. I am looking at Yahoo for a 3-4 month short term buy/sell, but still waiting it to drop below the $27 point.

Gold is on a short jump to around $1400. This will happen in the next month or less. Miners are jumping and the best bang for the buck is GG.

Today, apple will jump in after hours when they report. Pricing it at around $444 in after hours after there report. I would buy, but I will not be able to watch it in after hours trading.

Keep a very close eye on F. Look for a pull back below or at $16. It is set up now for a good day trade.
Posted by lighter345
Member since Jan 2009
11864 posts
Posted on 7/24/13 at 10:10 am to
So...did anyone buy CAT ahead of earnings?
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 7/24/13 at 2:49 pm to
Two nights ago, Cramer was pumping NAT.

It's up 8.5% since the show.
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89531 posts
Posted on 7/24/13 at 5:14 pm to
I went ahead and bought KO today at 41 1/8. I figure it's a lifelong commitment.

It was the only thing on my list NOT near a 52-week high (except PM).

Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 7/24/13 at 5:36 pm to
ace midnight! Visa smashed earnings! and PSX is up alot this week, Im so damn happy now. Coke is nice man, but id be careful with it, they're good for 6-7% annual returns and have an awesome brand but even buffett said he wouldn't but anymore these days. It's not that it's bad, it's just there are so many dividend growth stocks with more growth ahead, coke is losing market share. I know I've switched my fountain machines to pepsi bc the syrup bags were significantly less but overall I'm noticing alot more people buying the generic sodas and saving some money.

Take it for what it's worth but coke hasn't had impressive earnings in a while, but they're a good store of wealth for sure, you definitely won't lose money. I have a good chunk but I havent added any in a loooong time.
This post was edited on 7/24/13 at 5:38 pm
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89531 posts
Posted on 7/24/13 at 5:38 pm to
quote:

Take it for what it's worth but coke hasn't had impressive earnings in a while, but they're a good store of wealth for sure, you definitely won't lose money.



I think they've done some things with their fundamentals - debt and such. The company is so strong that any collapse will be slow and obvious.

I'm still buying V, it's just I didn't see any point in doing it today with it sitting at $190 or whatever - $190, $195, $200 - what's the difference at this point.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 7/24/13 at 6:55 pm to
I have a big 10 shares of V. 115 of PM.
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 7/24/13 at 7:12 pm to
quote:

I think they've done some things with their fundamentals - debt and such. The company is so strong that any collapse will be slow and obvious.



Well the beta is like .5 i think haha so yea. I think you'll do very well,definitely beat inflation by holding for many many years.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 7/24/13 at 7:34 pm to
How many shares of V do you have?
Posted by donRANDOMnumbers
Hub City
Member since Nov 2006
16908 posts
Posted on 7/24/13 at 7:53 pm to
quote:

So...did anyone buy CAT ahead of earnings?


Sold mine a while back when it pushed over 100, glad i did.

I did buy VMW though
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 7/24/13 at 8:25 pm to
acemidnight and wegotthatwood,

your shares of PM yield 3.83% today at $88, when the dividend goes from $3.40 to $3.75(expected) in september the share price will probably rise to the $97-99 level to put the yield back at the 3.8% level the shares are at today.I wouldn't worry much about the recent price action with it going nowhere, this is great for accumulating shares. Look at other dividend growth companies like Exxon and Chevron and where their share prices have gone since dividend increase. Chevron went from $115 to $127 and Exxon went from $86 to $95 range. The yield and share price go hand in hand, if they raise the yield to $3.75 and the share price stays at $88 I'd be ecstatic bc the yield would be 4.3% but that's just not gonna happen.
Posted by ell_13
Member since Apr 2013
85035 posts
Posted on 7/24/13 at 8:28 pm to
quote:

ThaBigFella


Always love your info.
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89531 posts
Posted on 7/24/13 at 8:43 pm to
quote:

your shares of PM yield 3.83% today at $88


I almost bought more PM today, instead of KO. I decided not to put all of my eggs in one basket. So I planted another oak. If 1 dies, I have the other.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 7/24/13 at 8:46 pm to
My next $5,500 in 2014 I think will go more into V I think.
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 7/24/13 at 8:47 pm to
I mean it's wise, but the yield is a whole point higher and the dividend growth is much higher, over the years it will be a significant difference in total return.....it would be one hell of an oak tree to fall. I think there would be a revolution in the streets all around the world if cigarettes went belly up.

Not to mention the tax revenue governments rely on would vanish....needless to say it would be a cold day in hell before the PM oak tree dies haha

George Zimmerman has a better chance of becoming an African-American cultural icon than PM dying.
This post was edited on 7/24/13 at 8:50 pm
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 7/24/13 at 8:51 pm to
careful wegotdatwood, V smashed earnings today, they could be $200/share in a few days, it was up $6 in after hours. You don't wanna overpay, I really have no idea how to value it anymore, it's crushed earnings big time the last 5 quarters hence why its up almost 400% in the last 4-5 years.
This post was edited on 7/24/13 at 8:57 pm
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89531 posts
Posted on 7/24/13 at 8:51 pm to
quote:

I mean it's wise, but the yield is a whole point higher and the dividend growth is much higher, over the years it will be a significant difference in total return.


I hear you. I was torn between V, KO and more PM. Your analysis of V is solid, and I will pick some up. I'm going to try to catch PM before it gets into the mid 90s - I'm just taking it one step at a time.
Posted by LSUTOM07
Baton Rouge
Member since Dec 2011
765 posts
Posted on 7/24/13 at 9:05 pm to
When do you see PM announcing the dividend increase?
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 7/24/13 at 9:05 pm to
quote:

You don't wanna overpay, I really have no idea how to value it anymore, it's crushed earnings big time the last 5 quarters hence why its up almost 400% in the last 4-5 years.



True, what are some other things Buffett is buying?


It stinks only having 10 shares of V.



Posted by Jake88
Member since Apr 2005
68235 posts
Posted on 7/24/13 at 9:09 pm to
Any chance we see Visa drop below $180 any time in the next 6 months?
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