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re: Stock Watch Thread

Posted on 10/21/14 at 7:29 pm to
Posted by bayoubengals88
LA
Member since Sep 2007
18882 posts
Posted on 10/21/14 at 7:29 pm to
MMM is a solid choice

Thanks for your opinion on IBM. I don't know much about F except that its P/E is below 9, and it pays a good dividend. I have the same questions that you have about the future of Ford, but unfortunately I have no answers (the price is just so attractive).

I may just sit this month out again and put more towards debt.

TTT: Yes, I'd say below $15 is a good price for Ford. Price to Earnings is extremely low still.
Posted by CrackingCodes
Baton Rouge
Member since Jun 2010
689 posts
Posted on 10/22/14 at 8:51 am to
I'm looking at IBM hard right now because it's a nice 10% discount at the moment. Anyone have opinions on this stock?
Posted by bayoubengals88
LA
Member since Sep 2007
18882 posts
Posted on 10/22/14 at 10:16 am to
read the last two or three posts...
Posted by LSUneaux
NOLA
Member since Mar 2014
4485 posts
Posted on 10/22/14 at 10:33 am to
Finally got on the board with MMM at $140.40. Unfortunately I had to chase up because my order at 140 didn't fill. Neither did orders at .10, .25, and .30. I felt desperate to chase up because I was concerned it would gap up back to the ballpark of $140.90, and I needed to get in with enough for 13 shares before tomorrow's earnings call. That's one drawback of triple digit quotes - a PITA to use up all your available cash evenly.
Posted by bayoubengals88
LA
Member since Sep 2007
18882 posts
Posted on 10/22/14 at 5:35 pm to
quote:

I'm looking at IBM hard right now because it's a nice 10% discount at the moment. Anyone have opinions on this stock?



Read this:
"But all these “shareholder friendly” maneuvers have been masking an ugly truth: IBM’s success in recent years has been tied more to financial engineering than actual performance."

“IBM is a buyback machine on steroids that has been a huge stock-market winner by virtue of massaging, medicating and manipulating” its earnings per share."

LINK
This post was edited on 10/22/14 at 5:38 pm
Posted by bogart
Member since Dec 2013
1201 posts
Posted on 10/22/14 at 7:25 pm to
Anyone like Google or Chipotle for a long term investment after they have come down some?
Posted by bayoubengals88
LA
Member since Sep 2007
18882 posts
Posted on 10/22/14 at 7:37 pm to
quote:

Anyone like Google or Chipotle for a long term investment after they have come down some?



If they don't pay a dividend and have a P/E higher than 30 I wouldn't be interested in investing long term.
Posted by LSUneaux
NOLA
Member since Mar 2014
4485 posts
Posted on 10/22/14 at 8:56 pm to
I have Google. While all they really market now is the Android, they are an innovation freak. Right now they are working on driverless cars, renewable energy, wiring cities with fiber optic cables with the goal of significantly lowering Internet service costs, and beginning to foray into regenerative medicine including cancer research. This is just a list of SOME things they are working on.

They have over $50 billion in cash reserves, and most analysts agree they will eventually begin a dividend. Why don't they have one now? They use profits to reinvest into the company to research, develop, and build more value-creating products and wealth -- raising your price per share. Eventually we will see more of these products hit shelves and not just news articles on what they are building.

An enormous company, with enormous money and ideas. Disclosure: I do own this as a long hold, and my opinion that they will be like the GE of the 21st century. Constantly inventing things...


"Once the 1.1 million square foot Bay View addition comes on line in 2015 the Googleplex will be the largest collection of Google buildings with 3.1 million square feet of space." To put it in perspective, 1 million SF is about the size of a typical shopping mall. This is just PART of their Silicon Valley headquarters called the Googleplex.:

This post was edited on 10/22/14 at 9:05 pm
Posted by bayoubengals88
LA
Member since Sep 2007
18882 posts
Posted on 10/22/14 at 9:15 pm to
I don't disagree at all...and the dividend will come. Most tech companies are slow to pay one for the reason you mentioned.

Fwiw, I like Google more than Chipotle long term. It's not even close.

Google is a giant, no doubt.

Posted by LSUneaux
NOLA
Member since Mar 2014
4485 posts
Posted on 10/22/14 at 9:26 pm to
I know MCD has been a pillar of the American economy, but I'm not really interested in fast food joints. The one exception may be YUM with their expansion plans into BRIC countries. I don't have YUM, and it's not on my short list for future companies to buy.

If NOLA-based Smoothie King ever went public I would buy the day the IPO came out. There are limitless amount of opportunities to put a franchise. There are what 700? stores now with so many (tens of thousands) of opportunities in America alone. Right now their plans are to double the company in the next year or two. I really really wish they'd go public. Not only that, but Americans are becoming more health conscience these days. Investing in Burger King just doesn't interest me.
This post was edited on 10/22/14 at 9:28 pm
Posted by bayoubengals88
LA
Member since Sep 2007
18882 posts
Posted on 10/22/14 at 9:44 pm to
Were you responding to me? Did I say anything about fast food recently?

I don't disagree, but if KO goes below $35 I'd have to consider it.
Let us know when that Smoothie King IPO is coming out

GM reports earnings tomorrow, and Ford reports on Friday. Should be fun.
MMM reports soon too right?
Posted by LSUneaux
NOLA
Member since Mar 2014
4485 posts
Posted on 10/22/14 at 9:49 pm to
I don't think there has ever been talk of SK going public. Wan Kim is doing just fine owning the whole company himself and doesn't want my pennies.

MMM is tomorrow morning before market open, so this is why I was desperate to get it today. I have confidence the news will be good.
Posted by windshieldman
Member since Nov 2012
12818 posts
Posted on 10/22/14 at 9:53 pm to
Any thoughts on RAI

Reynolds American, kinda thought good growth stock with good dividend
Posted by LSUneaux
NOLA
Member since Mar 2014
4485 posts
Posted on 10/22/14 at 10:00 pm to
Developing countries will be smoking for a long long time, despite North American and Western European trends to healthier lifestyles.

PM has a 45.92 return on investment??
This post was edited on 10/22/14 at 10:03 pm
Posted by bayoubengals88
LA
Member since Sep 2007
18882 posts
Posted on 10/22/14 at 10:04 pm to
It is what it is. All major tobacco stocks are still near their 52 week high, and all of them pay a dividend of greater than 4%.

Most people choose PM or MO when it comes to long term holding. I don't know much about Reynolds foreign market. Do they have one? If they do, and it's good, I see no reason for RAI to be a bad choice.

As seen in some of the "stickied" threads, TheBigFella has made a living on PM dividends after 20 or so years of investing.

ETA: If you're wanting to buy into tobacco, I'd look at dividend increases over the past 20-30 years and payout ratio. Since you'll be long on the stock you'll want a company that can afford to continually increase dividends.
This post was edited on 10/22/14 at 10:14 pm
Posted by LSUneaux
NOLA
Member since Mar 2014
4485 posts
Posted on 10/22/14 at 10:24 pm to
Where do you do your research?
Posted by bayoubengals88
LA
Member since Sep 2007
18882 posts
Posted on 10/22/14 at 10:44 pm to
Honestly, right here. In February of this year I had not even heard of Vanguard, a Roth IRA, nor could I have named 3 companies on the Dow 30.

I'm totally new to stocks and investing. I just read about everything I could from March to August.

I read dividend blogs, some Seeking Alpha, yahoo finance links, some reddit forums...I've just picked up stuff here and there.

What about you?
Posted by bogart
Member since Dec 2013
1201 posts
Posted on 10/22/14 at 11:00 pm to
I agree with your views on Google. I plan to buy some in my IRA soon and buy a little in my Loyal3 account every month. It might take 10 or 15 years but I think they will be pressured to pay a dividend like Apple. I think 30 years from now it will be a home run.

I brought up Chipotle because they still have tons of run for growth. They also have a couple of new concept restaurants that could do well in time. It would also be very easy for them to add a few new items and be open for breakfast serving breakfast burritos and bowls. A lot of people say the stock is currently too expensive and that may be true.

I think if Pie Five ever split from Pizza Inn it might be a good buy. I like the future of Pie Five but don't really have any interest in owning Pizza Inn.
This post was edited on 10/22/14 at 11:01 pm
Posted by LSUneaux
NOLA
Member since Mar 2014
4485 posts
Posted on 10/22/14 at 11:07 pm to
Same. Honestly, I'd to know where people get their data to research to find things out like "the p/e ratio is at its highest in 3.5 years!!"

I want to be able to figure stuff like that too.
Posted by LSUneaux
NOLA
Member since Mar 2014
4485 posts
Posted on 10/22/14 at 11:09 pm to
If history is any indication, tomorrow we should see an announcement from Visa on its new dividend! They declared on 10-23-2013. Also, the next declaration will include a dividend hike! Most analysts feel the dividend growth will be insane in the coming years.


I'm big on V too. We are heading to a cashless society, continuing growth of Internet commerce, and V has most of the world to grow. Apple Pay will use Visa. As BigFella says, we are not going back to the 1970s where we used cash for everything. Plastic money is the future. Keep this stock for decades.
This post was edited on 10/22/14 at 11:25 pm
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