Here is Alleyway Investing's Stock of the Week!
Our Stock of the Week is... Illinois Tool Works!
Yes Illinois Tool Works is a great stock to buy for this week because it goes off of its earnings. Its earnings come out this week and so it can continue its nice run. It should have good earnings and has solid fundamentals, not mention machinery should be a key sector to look at in 2013. I like this company a lot. Invest with care and confidence. I am a Minor. Only giving opinionated investment advice. Advice subject to change. Not responsible for losses.
Sunday, January 27, 2013
Stocks Weekly Forecast
Stocks last week soared; the S&P and Dow both hit 5 year highs. Although the NASDAQ was not as successful, mostly because of Apple shedding another 14% on rough earnings. Exxon Mobile passed Apple last week as the most valuable company in the market. So with a good week (except for some techs, and Apple) what will the market do next week?
- The markets last week enjoyed consecutive gains even with a correction in question, the S&P and Dow hit 5 year highs, and most forecasters did not predict these consecutive gains, especially from a key earnings report from Netflix. So now, with such great gains last week in consecutive trading sessions what should we expect this week?
- This week is critical for 3 reasons. Big earnings reports continue with the earnings season still in force. More and more investors are turning their head sideways on these markets trying to figure out if it could really support these consecutive gains. The next reason is because this week is a big week for economic data coming out. Now before I go into each reason in depth, you should expect a couple of things this week. The last week of January is the busiest week for 4th quarter earnings results with many S&P companies releasing earnings. Hard for all of these companies to have huge earnings reports especially when most of them are expected to be week. Although that could help the markets if they do beat reports, it would be easier for them too. Also, even though the fiscal cliff has been averted till May now, the only problem from Washington is the March 1st budget deadline which is coming closer and closer with us switching the calender from January to February. The closer we get the more chances of the market getting spooked, although come Friday this week, we will still be 27 days away. Finally, with huge economic data coming out, and with the US economy picking up its pace can it keep ahead of steam? Well only thing stopping this market is a brick wall, which stands for surprisingly bad data. Which could happen, but seems unlikely. What is more likely to bring this market down are critics. Anyone knows whether it be sports or the markets, streaks have to come to an end at some point, and as more investors climb aboard this bull run, investors need to be prepared for a pull back or correction at some point. The question is when, and I'd have to say this week it might drop 1 or two days. I'm not saying big drops (unless some reports are negative) i'm saying some minor drops. Volume in the market is growing and more investors seem to be willing to spend in the market and stopping now wouldn't be a good idea, although the date might be coming up soon.
- Here are some notable earnings reports coming out this week: Yahoo, Caterpillar, Jet Blue, Harley Davidson, Ford, Amazon, Boeing, Facebook, Time Warner, Exxon Mobile, Illinois Tool Works, Pfizer, NextEra Energy, and many many more. Look for some big companies to release some big earnings, I prefer to look at a good Illinois Tool Works earnings as well as Exxon Mobile and NextEra Energy. There are some other reports that I think will be notable, Facebook might not have good earnings as well as Time Warner, and Boeing could be interesting although it has been resilient through its 787 debacle. It might have bad earnings.
- The data that could move the markets, durable goods orders, consumer confidence, nonfarm payrolls, and other sales could also be potential data that could move the markets. With an economy that is picking up these data numbers are crucial to back up the claim that the market is making true gains. Make sure these are good number or else the markets could get worried and fall.
- One thing to keep in mind about this week is that the streak of the markets having gains will probably come to an end this week. Whether it be off of earnings reports or economic data or a mix I do not know, but that assumption seems to be a fair one with many investors.
This week will be crucial with everything said. And to sum it up, it could be a good one depending on some reports. As an investor, staying in the market seems to be a good idea, and looking at stocks carefully could also be an idea to think about, but once Washington gets to business with the debt deal and fiscal cliff. Unless Disney spreads some of there magic to Washington, congress won't agree on much, and so a deal would be hard to come by. But with postponing the deadlines could give some hope of getting a good deal done. I'd advise on contemplating getting out of the market come fiscal cliff time although it depends on the months coming up if I'd keep that opinion. For now, and this week, look at the earnings reports and the data to see how the markets will do and see if any big news comes out to shake the markets. Invest with care & confidence.
- The markets last week enjoyed consecutive gains even with a correction in question, the S&P and Dow hit 5 year highs, and most forecasters did not predict these consecutive gains, especially from a key earnings report from Netflix. So now, with such great gains last week in consecutive trading sessions what should we expect this week?
- This week is critical for 3 reasons. Big earnings reports continue with the earnings season still in force. More and more investors are turning their head sideways on these markets trying to figure out if it could really support these consecutive gains. The next reason is because this week is a big week for economic data coming out. Now before I go into each reason in depth, you should expect a couple of things this week. The last week of January is the busiest week for 4th quarter earnings results with many S&P companies releasing earnings. Hard for all of these companies to have huge earnings reports especially when most of them are expected to be week. Although that could help the markets if they do beat reports, it would be easier for them too. Also, even though the fiscal cliff has been averted till May now, the only problem from Washington is the March 1st budget deadline which is coming closer and closer with us switching the calender from January to February. The closer we get the more chances of the market getting spooked, although come Friday this week, we will still be 27 days away. Finally, with huge economic data coming out, and with the US economy picking up its pace can it keep ahead of steam? Well only thing stopping this market is a brick wall, which stands for surprisingly bad data. Which could happen, but seems unlikely. What is more likely to bring this market down are critics. Anyone knows whether it be sports or the markets, streaks have to come to an end at some point, and as more investors climb aboard this bull run, investors need to be prepared for a pull back or correction at some point. The question is when, and I'd have to say this week it might drop 1 or two days. I'm not saying big drops (unless some reports are negative) i'm saying some minor drops. Volume in the market is growing and more investors seem to be willing to spend in the market and stopping now wouldn't be a good idea, although the date might be coming up soon.
- Here are some notable earnings reports coming out this week: Yahoo, Caterpillar, Jet Blue, Harley Davidson, Ford, Amazon, Boeing, Facebook, Time Warner, Exxon Mobile, Illinois Tool Works, Pfizer, NextEra Energy, and many many more. Look for some big companies to release some big earnings, I prefer to look at a good Illinois Tool Works earnings as well as Exxon Mobile and NextEra Energy. There are some other reports that I think will be notable, Facebook might not have good earnings as well as Time Warner, and Boeing could be interesting although it has been resilient through its 787 debacle. It might have bad earnings.
- The data that could move the markets, durable goods orders, consumer confidence, nonfarm payrolls, and other sales could also be potential data that could move the markets. With an economy that is picking up these data numbers are crucial to back up the claim that the market is making true gains. Make sure these are good number or else the markets could get worried and fall.
- One thing to keep in mind about this week is that the streak of the markets having gains will probably come to an end this week. Whether it be off of earnings reports or economic data or a mix I do not know, but that assumption seems to be a fair one with many investors.
This week will be crucial with everything said. And to sum it up, it could be a good one depending on some reports. As an investor, staying in the market seems to be a good idea, and looking at stocks carefully could also be an idea to think about, but once Washington gets to business with the debt deal and fiscal cliff. Unless Disney spreads some of there magic to Washington, congress won't agree on much, and so a deal would be hard to come by. But with postponing the deadlines could give some hope of getting a good deal done. I'd advise on contemplating getting out of the market come fiscal cliff time although it depends on the months coming up if I'd keep that opinion. For now, and this week, look at the earnings reports and the data to see how the markets will do and see if any big news comes out to shake the markets. Invest with care & confidence.
Friday, January 25, 2013
What To Look For In The Market
When researching the market for certain stocks, you don't have to just go off of what another investor says or the researchers say for your brokerage account, you can go off of your own thinking once you get the hang of it. There are some key statistics to look at to find successful stocks and funds. In my last article about "Short Term Investing" the key ratios to look at is how the company is producing right now. Does it make enough money to sustain a profit? And if it makes a lot of money, does it put more money into the company so it keeps ahead of the competition? The next key to look at is what about the company appeals to you? Is it the leadership? Is it the companies competitive advantage? Or does its product or service have potential in the future to be dominant? Also look for its stock charts and patterns. Key stock charts can hold some hints to what the future holds for the company. Certain patterns in the chart could help predict what could possibly happen next to the company. Although it is a risky tactic, there has been proven facts that say studying the stock charts can be a beneficial way to find certain stocks.
The worst thing to do when looking for a stock is going off of what spam says. Don't get me wrong; reading respected authors and successful investors is a great way to widen your investment knowledge, but you have to realize that there is some spam out their that say they can offer you 1,000% in a 9 month span, and so use the rule; if it's too good to be true, it probably is. What you should look for in the markets today is certain trends that you think will bring you the most profit. For example, mobile devices including smart phones have been a trend ever since the first iPhone came out. Although popular trends that are lasting a long time can't hold their momentum forever. Hidden trends are tends to invest on. Trends like 3D printing is a great trend to invest on for the future. Even recreational marijuana is a trend to invest on. Medbox has soared in the last few months after Washington and Colorado past recreational marijuana laws. Different trends are hard to predict and making bad predictions can happen and so getting the feel for trends and when they slow down and when they speed up is a huge asset to have for investing.
To sum it all up you might want to take the advice of top investors and famous writers but be careful who you trust. Be confident in the knowledge you have. Have your own investing style. But still have the basics down and trust the right people until you get the hang of it. And if you are already a pro then master your market reads so you can make most out of your profits. Invest with care.
The worst thing to do when looking for a stock is going off of what spam says. Don't get me wrong; reading respected authors and successful investors is a great way to widen your investment knowledge, but you have to realize that there is some spam out their that say they can offer you 1,000% in a 9 month span, and so use the rule; if it's too good to be true, it probably is. What you should look for in the markets today is certain trends that you think will bring you the most profit. For example, mobile devices including smart phones have been a trend ever since the first iPhone came out. Although popular trends that are lasting a long time can't hold their momentum forever. Hidden trends are tends to invest on. Trends like 3D printing is a great trend to invest on for the future. Even recreational marijuana is a trend to invest on. Medbox has soared in the last few months after Washington and Colorado past recreational marijuana laws. Different trends are hard to predict and making bad predictions can happen and so getting the feel for trends and when they slow down and when they speed up is a huge asset to have for investing.
To sum it all up you might want to take the advice of top investors and famous writers but be careful who you trust. Be confident in the knowledge you have. Have your own investing style. But still have the basics down and trust the right people until you get the hang of it. And if you are already a pro then master your market reads so you can make most out of your profits. Invest with care.
Sunday, January 20, 2013
Stock of the Week
Here is your Alleyway Investing's Stock of The Week!
Our stock of the week segment has been very popular and many of the stocks have done very well since we mentioned them. This week I am taking a risk that many of you may not be willing to take. Our stock of the Week is.. Abbot Laboratories!
It came down between Abbot Laboratories and CSX. I still like CSX but Abbot Laboratories earnings look compelling and so it may be risky to like these companies but both of these companies look to have a good week.
Our stock of the week segment has been very popular and many of the stocks have done very well since we mentioned them. This week I am taking a risk that many of you may not be willing to take. Our stock of the Week is.. Abbot Laboratories!
It came down between Abbot Laboratories and CSX. I still like CSX but Abbot Laboratories earnings look compelling and so it may be risky to like these companies but both of these companies look to have a good week.
Stocks Weekly Forecast
Stocks last week ended with little volatility but ended the week with gains. NASDAQ had some gains but still was a weak 5 days for the NASDAQ behind ups and downs from Apple and tech stocks last week. With great signs of the economy picking up, can the stocks keep up this bull run again this week?
- The stocks last week with huge earnings reports from banks were pretty mixed. Our stock of the week last week, Morgan Stanley had a great week though. Although Citi didn't have a great week. Other stocks like Intel slipped and Ebay only held slight gains. The market for the most part remained mixed from some bad earnings reports, some good earnings reports, and some decent economic reports.
- This week earnings will still be a big part of the market. The market will prepare itself for earnings reports and hopefully will have a some other news to balance out some bad earnings. On Tuesday, notable earnings reports from IBM, Texas Instruments, Verizon, Johnson & Johnson, Google, TD Ameritrade, Delta Airlines, and CSX. Unless some huge earnings report comes out from one of these companies, the company that many will be looking at to turn the markets, especially technology stocks will be Apple on Wednesday. Apple's earnings are expected to be big, but the biggest test for the worried company will be Wednesday when its earnings do come out. They should try to put the downward spiral to rest. Will they? Well Apple's products line hasn't changed too much from December, and with some decent holiday reports from retails, including Best Buy, Apple products could benefit from it. Other earnings reports you should do some research into to see if they are with investing in. The market should go up and down on these reports unless most of them are positive, then the market will have some nice gains.
- Other notable earnings reports coming out this week: Abbot Laboratories, Coach, McDonalds, Motorola, Netlfix, SanDisk, 3M, Amgen, Brunswick, AT&T, Celgene, Etrade, Microsoft, and more. With so many earnings reports this week. What do you pick out? Well Alleyway Investing likes Celgene a former stock of the week, IBM, Verizon, Google, and to watch Apple and Johnson & Johnson could be interesting.
- With the entire fiscal cliff worries and budget crisis looming over the markets, Washington voted to move the storm that could hit wall street hard, to April during tax season. This might leave you more room to investing in the time being and the market could propel higher for the short term till April, but this storm has to get handled the American way; arguments. And when it does, it won't be pretty. And so the markets could be threatened. Until then the market won't be terrible, in fact you can get some nice gains in the time being.
Futures seem to be up after Washington voted on worrying about the budget crisis in April instead of February or March. This week could be a little like the last with ups and downs from earnings reports. Some earnings reports could have more impact than others, like Apple and Google, but investing on earnings reports could be a good way to invest and rack up some gains this week. Instead of worrying about all of the earnings reports coming out, we suggest to just focus on a key few. That makes it easier for you to study the hell out those few companies and squeeze out as much gains as possible without spending days and days and days researching every company. Although the stock everyone will watch next week is Apple. Also, with housing reports continuing momentum, the economy has really been picking it up recently, and it could continue until taxes come into question in April. This week will be big for the NASDAQ and Apple but the markets could correct itself slightly Monday and then go off of earnings reports the rest of the week. Invest with confidence, invest with care.
- The stocks last week with huge earnings reports from banks were pretty mixed. Our stock of the week last week, Morgan Stanley had a great week though. Although Citi didn't have a great week. Other stocks like Intel slipped and Ebay only held slight gains. The market for the most part remained mixed from some bad earnings reports, some good earnings reports, and some decent economic reports.
- This week earnings will still be a big part of the market. The market will prepare itself for earnings reports and hopefully will have a some other news to balance out some bad earnings. On Tuesday, notable earnings reports from IBM, Texas Instruments, Verizon, Johnson & Johnson, Google, TD Ameritrade, Delta Airlines, and CSX. Unless some huge earnings report comes out from one of these companies, the company that many will be looking at to turn the markets, especially technology stocks will be Apple on Wednesday. Apple's earnings are expected to be big, but the biggest test for the worried company will be Wednesday when its earnings do come out. They should try to put the downward spiral to rest. Will they? Well Apple's products line hasn't changed too much from December, and with some decent holiday reports from retails, including Best Buy, Apple products could benefit from it. Other earnings reports you should do some research into to see if they are with investing in. The market should go up and down on these reports unless most of them are positive, then the market will have some nice gains.
- Other notable earnings reports coming out this week: Abbot Laboratories, Coach, McDonalds, Motorola, Netlfix, SanDisk, 3M, Amgen, Brunswick, AT&T, Celgene, Etrade, Microsoft, and more. With so many earnings reports this week. What do you pick out? Well Alleyway Investing likes Celgene a former stock of the week, IBM, Verizon, Google, and to watch Apple and Johnson & Johnson could be interesting.
- With the entire fiscal cliff worries and budget crisis looming over the markets, Washington voted to move the storm that could hit wall street hard, to April during tax season. This might leave you more room to investing in the time being and the market could propel higher for the short term till April, but this storm has to get handled the American way; arguments. And when it does, it won't be pretty. And so the markets could be threatened. Until then the market won't be terrible, in fact you can get some nice gains in the time being.
Futures seem to be up after Washington voted on worrying about the budget crisis in April instead of February or March. This week could be a little like the last with ups and downs from earnings reports. Some earnings reports could have more impact than others, like Apple and Google, but investing on earnings reports could be a good way to invest and rack up some gains this week. Instead of worrying about all of the earnings reports coming out, we suggest to just focus on a key few. That makes it easier for you to study the hell out those few companies and squeeze out as much gains as possible without spending days and days and days researching every company. Although the stock everyone will watch next week is Apple. Also, with housing reports continuing momentum, the economy has really been picking it up recently, and it could continue until taxes come into question in April. This week will be big for the NASDAQ and Apple but the markets could correct itself slightly Monday and then go off of earnings reports the rest of the week. Invest with confidence, invest with care.
Friday, January 18, 2013
How To Trade Emerging Markets
With the fiscal cliff and budget crisis still not quite avoided, and expected to come crashing into the scene in February, the US markets might get spooked and pull back from their recent bull run. Alleyway Investing still likes many US stocks and are willing to keep their money in them come February, but we are preferring to go with emerging markets instead.
Their are some promising emerging markets to look at this year, and with the worries here in the US coming up, it is the perfect time to put in some research into these markets. Their is tremendous upside in emerging markets because of the fast growing economic growth measured by GDP. Many emerging markets are having greater middle income families and more discretionary income that they may spend. Although their is upside, emerging markets are risky. Political instability, domestic infrastructure problems, volatility, and weak equity are all the risk factors that have to be accounted for when researching emerging markets. Also, you have to do more research into emerging markets than any other markets because of the risks and because you might have to familiarize yourself with the countries economy. With all of this being said, there is still upside in these emerging markets in 2013.
The Philippines - When investors look at Asian markets they probably don't look at the Philippines too often. But, this might be the next Asian market to emerge to be a superstar in Asia this year. In 2012, The Philippines were one of the fastest growing markets in the world, and their real estate industry was one of the hottest in the world. Now with expectations to continue growing, The Philippines might be a market to look at. Their GDP outlook is moving at an impressive 7.1% rate. The Philippines exports are also rising with Japan and the US. Not to mention the Philippines and I also share a common love, basketball. Although, their seems to be some reports of slight downside. Their is a WPR article that says the structural weakness and tensions with China seem to be some negative sides of the Philippines, I'd do some more research into this countries markets before taking any type of action.
Peru - Peru looks to be one of the best markets to invest in this year. We really do see tremendous upside in Peru this year. Sure it is a very risky market since the turmoil of the 80s and 90s drug trafficking, violence, and high inflation, but Peru seems to be on the upside and is sneaking past some investors as a dominant South American market. Their leading sectors: banking, construction, and retail are all major signs of a growing market. Peru also has a big growing middle income class. With Peru picking up steam in the end of 2012 it should continue a strong year in 2013. Peru's biggest exports are gold, copper, and silver and other natural resources. With natural resources looking to bounce back this year, Peru is good market to look at and invest in this year.
South Africa - South Africa's stocks went up 22% in 2012. And this emerging market is quickly becoming popular. I'd do some more research into this market before investing in it, but much like Peru, South Africa has a high growing GDP, and a middle class expansion, also like Peru it is a big natural resource exporter, but also has high agricultural exports as well. It is more of a diverse market, and seems to be less of a notable emerging market because of its negative side. The problem with South Africa is its expectations seem low, which might look like a good thing to see South Africa beat its expectations, and it could, but there seems to be some lingering issues. A high unemployment isn't too good for an emerging market. It also relies too much on its exports and energy sector, that if failed, could leave South Africa in trouble. Its imports are expected to decrease this year. Its market chart also looks like it can't keep supported an upward trend and could pull back slightly, although with all of that being said, South Africa could be a good market to at least take a look at.
These three markets are poised to have a nice upside this year. Doing more research into them, and figuring out your strategy plan of how to get in and out, would be beneficial for you because of the high risk involved. Markets like Russia and India may be getting all the attention but that might not be the best way to look at emerging markets, finding a surprising market that has a tremendous upside could be a better choice. Invest with care.
Investment opinions by a minor, not responsible for losses, WPR article in research as well as Investopedia.
Sunday, January 13, 2013
Stock of the Week
Alleyway Investing's Stock of the Week is .... Morgan Stanley!
Yes, I am taking the gamble and going with the financial sector despite all of the reports. This decision is risky, but I have a good sense why I should chose this stock. With all of the big banks reporting their earnings this week and with Wells Fargo beating earnings, but getting beat in the mortgage business because of the smaller profit margins. Therefore, most of the financials got hit Friday. This is foreshadowing for this week, financial stocks could beat earnings, but get killed in the mortgage business. The financials will have a good year, and have good earnings, but with the news released from Wells Fargo being negative, the financials got drilled Friday. Morgan Stanley is less of a player in the mortgage business than Bank of America, Citigroup, Wells Fargo, and others therefore, if Morgan Stanley beats its earnings, the effect from the smaller profit margins in the mortgage business will have little effect on Morgan Stanley, causing it to be Alleyway Investing's stock of the Week.
Stocks Weekly Forecast
With stocks staying mostly flat last week, and earnings season in full force this week, what will the markets do? We have all the details. Here is our Stocks Weekly Forecast.
- The stocks did mostly what I predicted last week and for the most part the markets stayed flat with modest gains throughout the week. In the end, the week was a positive one. Although the US trade data on Friday was somewhat disappointing on exports that declined. Earnings season kicked off last week with some movers including our stock of the week Monsanto as well as Wells Fargo, Alcoa and Ruby Tuesday.
- This week will be a huge week for stocks. Earnings season is in full force with the big financial stocks in the front of it. Now analysts have marked down the earnings season for the financials this quarter, and I believe they might be just talking down the stocks so they can beat their earnings this quarter. The hint was when Wells Fargo released their earnings, the beat it, the only problem was their interest rate for the future was cut. If Wells Fargo beat their earnings I believe the financial sector can beat theirs too. The notable financials releasing their earnings: Goldman Sachs, J.P. Morgan & Chase, American Express, Bank of America, Citigroup, and Morgan Stanley. It will be truly make or break for the financials to start off the season. If they do make or beat their earnings, then the financials could have an incredible rally for the rest of 2013, and if the financials break, they could still recover enough to make gains in the rest of year. (assuming Washington fixes the fiscal cliff and debt ceiling before the date in March)
- With earnings season in full force, there is still other notable earnings that might be a good investment if you want to avoid the financial sector this week. Johnson Controls, General Electric, Ebay, Intel, and United Health Corp. all release their earnings this week. Those might be great stocks to buy if you do not want to get into the financial sector this week. It is a gold mine for earnings investors because of all the earnings that are coming out, if you do enough research on these companies for the short term, look at their predicted earnings, compare them year-to-year and you might find a stock that is set to break its earnings report. I know Ebay is expected to have a big year, so that might be one to take a look at. Check out our article about earnings trading.
- Even with the earnings season taking up all the news, there is still important events in Washington to note for this week. Monday Bernanke talks after the stock markets close, this could have big impacts on the futures, or even foreign markets, it might have an impact on Tuesday's markets depending on what he says. December retail sales come out Tuesday. Home builders and consumer price indexes come out Wednesday. Housing starts for December come out Thursday. With all of the events going in Washington this week, some wont have a big effect on the markets compared to the earnings season this week but some data will have an impact on the markets enough to move it big time in either direction. Most of these indexes will likely effect the retailers the most. The retailers were expected to have a bad holiday season, and so the data from Tuesday, and even other reports will be big for the retail sector. It is expected to be bad but show some optimism in some data that could be good. The data that is expected to further its momentum from 2012 is the housing data. This data that comes out at the end of the week, should be a nice number which is good for the housing market, although with strong financials also releasing their earnings, the markets may focus on financials rather than the data from the housing, just like when any data from the housing markets were tuned out to listen to the gridlock in Washington about the fiscal cliff. The consumer spending data is a crucial part of the economy, and its outlook is dim this week as less shoppers were spending their discretionary income this year for the holidays.
This week is a big one that's no doubt, with a vast amount of information coming out from Washington and a dual threat with earnings season in full throttle this week, the financials and the rest of the market will be effected entirely by the earnings and economic indexes. Last week was very flat in terms of volatility and so this week depending on the data may be the opposite. If all of the data is good, and earnings surprise investors and soar, then the market will go soaring, if there is mixed data along with mixed earnings the markets could stall. Earnings will be crucial and I expect them to not be entirely bad, in fact most stocks will have some success this earnings quarter, and so the markets could rally, although the consumer spending data will be crucial and if that is bad then the markets could take a turn downwards. And if earnings are bad the markets could take a turn for the worst. If you are in the stock market now, keep your eyes peeled and do your research, their could be some good stocks this week, although this might not be a time to buy, instead just hold, unless you like to invest on earnings, then continue on with your research. This quarter was expected to be bad, but I truly have some optimism that not all of the stocks will have a terrible quarter, instead the markets could have a good week this week. It depends on the data, and these analysts do their research too, and are not that bad at their predictions. Although Wells Fargo data could hold the key to other financials' earnings this week. And so keep the optimism (until march) and do your research, invest with care.
My Own Investment Opinions, Not Responsible For Loses. Investment Opinions from a Minor.
Saturday, January 12, 2013
The Never Ending Saga With Best Buy
I remember when I was little I'd always be in awe of Best Buy. It had every electronic a kid would want, and then when I got older, I realized all of those electronics are either at Target or online somewhere for a lower price, instead of driving 40 minutes out of my way to get one. Best Buy is a dying breed. I've watched Best Buy closely since it is been on a free fall ever since last year. Sure it went sky high Friday on beating analysts numbers from the holiday season, but it is still on life support. I'm not saying that Best Buy can't come back, but there is more of a chance for you to have more success just by putting a blind fold on and randomly picking a stock off the exchange. Like Circuit City and Radio Shack, electronic retailers are becoming a thing in the past. Since you can get anything on Ebay and Amazon, plus the gigantic retailers of Walmart, Target, and many more, Best Buy just has too much competition and in a dying sector alone there is such little chance of it ever coming back to full strength. Who wants to buy an Iphone at Best Buy that can be bought at a sleek Apple store or an Xbox that can just be found at a local supermarket? The answer is nobody. Maybe if you want the best electronic service or have questions you might go to Best Buy, but still the attraction isn't too thrilling. Plus it doesn't help when your logo almost looks like the ancient Blockbuster logo. With that being said, there is still a slight upside in Best Buy. Its owner, Richard Schulze has been trying to make a bid to buy out the remaining company for 24$/26$ a share. Which would obviously be huge for the company. If he succeeds then maybe Best Buy could renovate and become a successful company, probably not, but it would still be an intriguing short term option. Really short term. Best Buy's European business is expected to rise which would also be nice for the ailing company.
To sum it up Best Buy is in no shape for an amazing run. And in a dying electronic retail industry Best Buy is the lone survivor, so will it fall over or can it keep going on life support? Well if Schulze gets a bid on it, it may show life for a little, but don't be fooled by its best day in 4 years. Its EPS estimates are still terrible, and it has very little equity. Its all about when it posts its earnings and if Schulze gets a bid on it in February. It still has a long way to go.
To sum it up Best Buy is in no shape for an amazing run. And in a dying electronic retail industry Best Buy is the lone survivor, so will it fall over or can it keep going on life support? Well if Schulze gets a bid on it, it may show life for a little, but don't be fooled by its best day in 4 years. Its EPS estimates are still terrible, and it has very little equity. Its all about when it posts its earnings and if Schulze gets a bid on it in February. It still has a long way to go.
Sunday, January 6, 2013
Stock of the Week
Here is our stock of the week!
Our stock of the week is... Monsanto Company! Monsanto has been the leading supplier of agricultural products to farmers, and with the rising costs in some agricultural products, and expected rise in 2013, Monsanto could be a great buy. Its earnings come out on Tuesday and so it might be able to beat earnings and keep its great run going into to the first quarter. Monsanto's earnings are expected to be 36 cents a share, which is a rise from 23 cents a year ago. Monsanto is counting on its oversees business which is over 50% to propel its earnings although with high earnings expectations could mean high disappointment keep an eye on how this stock does on Monday.
Our stock of the week is... Monsanto Company! Monsanto has been the leading supplier of agricultural products to farmers, and with the rising costs in some agricultural products, and expected rise in 2013, Monsanto could be a great buy. Its earnings come out on Tuesday and so it might be able to beat earnings and keep its great run going into to the first quarter. Monsanto's earnings are expected to be 36 cents a share, which is a rise from 23 cents a year ago. Monsanto is counting on its oversees business which is over 50% to propel its earnings although with high earnings expectations could mean high disappointment keep an eye on how this stock does on Monday.
Stocks Weekly Forecast
Earnings season is coming and after last week's gains how will the market react this week?
Here is your stocks weekly forecast
- Last week was a relief and dramatic end to the infamous and overly talked fiscal cliff. Or was it? The fiscal cliff got a deal that would push the date back to March. And with the debt ceiling crisis and government spending in question Washington basically made a huge effort to deal with everything in March. Making the market react all happy in the time being. Well last week during the shortened trading week because of new years, the deal getting done reacted to the futures gaining huge percentage numbers, and Wednesday the markets soared. Thursday and Friday were more modest and edged out slight gains, but overall the week was a success. The S&P reached its highest level in more than 5 years.
- This week should be an interesting one. Earnings season is hitting soon and so the majority companies will release their quarterly earnings in a matter of weeks. This should be the next catalyst to judge stocks by with the fiscal cliff averted for now.
- Earnings season is critical for a stocks success, but with recent economists and analysts cutting their expectations this quarter, the earnings season is expected to be below par. This may cause many stocks to have bad earnings, and so a bad quarter might be expected. The financials and technology sectors as well as materials will be hit the hardest. With that being said, their is still stocks that could be set to beat expectations, if you do enough short term research and look back at quarterly sales, then their is still a chance that earnings trading could work.
- The earnings this week that are notable are Monsanto, Alcoa, Ruby Tuesday, and Wells Fargo. Ruby Tuesday might not have great earnings as well as Wells Fargo, but Monsanto could have earnings that may beat expectations.
- The events this week that might be crucial for the markets are the wholesale inventories number and small business index. These economic indicators could have a large effect on the markets.
All in all this week should not be terrible. Economic indicators and some earnings might shake up the market a little bit but if all of the economic numbers turn out ok and keep rising then the market may do the same. Although this week may be a good week for the markets, the whole fiscal cliff deal and debt ceiling crisis is still not solved, and so March could be a rough month for the markets. I would expect the market to do what it was doing the last few months leading to the fiscal cliff, and that was mostly stalling with some good gains here and there. But, come March, keep your eyes peeled and hope Washington does not mess this one up.
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Here is your stocks weekly forecast
- Last week was a relief and dramatic end to the infamous and overly talked fiscal cliff. Or was it? The fiscal cliff got a deal that would push the date back to March. And with the debt ceiling crisis and government spending in question Washington basically made a huge effort to deal with everything in March. Making the market react all happy in the time being. Well last week during the shortened trading week because of new years, the deal getting done reacted to the futures gaining huge percentage numbers, and Wednesday the markets soared. Thursday and Friday were more modest and edged out slight gains, but overall the week was a success. The S&P reached its highest level in more than 5 years.
- This week should be an interesting one. Earnings season is hitting soon and so the majority companies will release their quarterly earnings in a matter of weeks. This should be the next catalyst to judge stocks by with the fiscal cliff averted for now.
- Earnings season is critical for a stocks success, but with recent economists and analysts cutting their expectations this quarter, the earnings season is expected to be below par. This may cause many stocks to have bad earnings, and so a bad quarter might be expected. The financials and technology sectors as well as materials will be hit the hardest. With that being said, their is still stocks that could be set to beat expectations, if you do enough short term research and look back at quarterly sales, then their is still a chance that earnings trading could work.
- The earnings this week that are notable are Monsanto, Alcoa, Ruby Tuesday, and Wells Fargo. Ruby Tuesday might not have great earnings as well as Wells Fargo, but Monsanto could have earnings that may beat expectations.
- The events this week that might be crucial for the markets are the wholesale inventories number and small business index. These economic indicators could have a large effect on the markets.
All in all this week should not be terrible. Economic indicators and some earnings might shake up the market a little bit but if all of the economic numbers turn out ok and keep rising then the market may do the same. Although this week may be a good week for the markets, the whole fiscal cliff deal and debt ceiling crisis is still not solved, and so March could be a rough month for the markets. I would expect the market to do what it was doing the last few months leading to the fiscal cliff, and that was mostly stalling with some good gains here and there. But, come March, keep your eyes peeled and hope Washington does not mess this one up.
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Saturday, January 5, 2013
Short Term Investing Is Essential
Short term investing isn't the most popular way to invest among old school investors although their is some up side to investing short term. Investing short term is a specialty of Alleyway Investing and is something that I personally favorite over long term investing. The most important reason is because short term investing is so much more flexible. You can make money in different markets. If the market is unstable and you can still edge out an advantage and make investing gains in the markets. Now there is some investors that short term investing may not be for. For example, many investors that are looking to save for retirement don't want to keep moving around their money, and want to let it be. If so, short term investing isn't so worth it. But short term investing is still essential. Its a great way to keep a careful eye on the market, do some ratios and research some stocks, own them for up to a year and do it all over again. Short term investing can turn some good profits rather quickly. It is good because you don't have to think too much about the far future and just worry about what is going to happen in the next couple of months.
First, you'll have to figure out some short term investing ratios and how to research a stock, you have to start with the basics. The principle ratios to look at (other than P/E ratios) have to be about how the company is doing right now, not in the future, but at this moment. You start by its assets to liability ratio, a ratio determining how its cash flow, inventory, liquidity, and basic income is related to its liability costs like employee fees, cash outflows, inventory costs, and other expenses. It can get more complex than that, but focusing on its assets and liabilities might be the main focus. A ratio that is more than one means that its assets is greater than its liabilities a good thing right? Well it really matters about which sector you go into; sectors like financials compared to retailers would have different ratios, start by averaging out the ratios for top companies to get an average for each sector. Also figure out its capable assets. This means that assets that are liquid, or capable of being moved around within hours or days. Instead of assets that are long term, like a building that could take months or years to sell. The more assets that are liquid the better, although if it has a ginormous ratio number and has a lot of liquid capital then that means that should be money invested into the company. As complex as these ratios get, there are many more, but figuring out these ratios and researching a stock is essential in short term investing, and can be a great way to turn a profit. Even if you are not a big short term investing fan, then figuring out a companies financial health is still essential to see if the company can do well in the short term, because if it cannot do well in the short term, it may be hard for it to do well in the long term. And these ratios can help you do that. Do your research and invest with care.
First, you'll have to figure out some short term investing ratios and how to research a stock, you have to start with the basics. The principle ratios to look at (other than P/E ratios) have to be about how the company is doing right now, not in the future, but at this moment. You start by its assets to liability ratio, a ratio determining how its cash flow, inventory, liquidity, and basic income is related to its liability costs like employee fees, cash outflows, inventory costs, and other expenses. It can get more complex than that, but focusing on its assets and liabilities might be the main focus. A ratio that is more than one means that its assets is greater than its liabilities a good thing right? Well it really matters about which sector you go into; sectors like financials compared to retailers would have different ratios, start by averaging out the ratios for top companies to get an average for each sector. Also figure out its capable assets. This means that assets that are liquid, or capable of being moved around within hours or days. Instead of assets that are long term, like a building that could take months or years to sell. The more assets that are liquid the better, although if it has a ginormous ratio number and has a lot of liquid capital then that means that should be money invested into the company. As complex as these ratios get, there are many more, but figuring out these ratios and researching a stock is essential in short term investing, and can be a great way to turn a profit. Even if you are not a big short term investing fan, then figuring out a companies financial health is still essential to see if the company can do well in the short term, because if it cannot do well in the short term, it may be hard for it to do well in the long term. And these ratios can help you do that. Do your research and invest with care.
Wednesday, January 2, 2013
Stock Watch List 2013
After our research we have come up with some stocks worth looking at in 2013. We'll check back on these stocks at the end of the year and see how we did.
Apple - Apple might of had a rough end of year after hitting its high in September, but its still a stock to look at in 2013. Apple's products are very popular, and if they stay that way, the stock only stays the same, and so the rumor of an Apple TV might need to spark Apple to have a good gain next year. The fiscal cliff seems to have effected Apple in late 2012 and I go into detail about it in my blog post about "Whats the Deal With Apple?" I have researched Apple and gave it a C- short term and B long term. The first couple of months with this fiscal cliff mess and budget problems still isn't too much of a buy in the beginning of 2013, and if it effects consumers they're not going to buy Apple but instead cheaper products. Long term and throughout the entire year in 2013, Apple should be good to go and buy. Its a giant for a reason and although it might be stalling a bit, and the loss of the genius Steve Jobs, the Apple TV could be huge for Apple, make or break. If its good then Apple should be a golden buy. But if not their might be a downside to Apple.
Cisco - Cisco will have a huge year in 2013. At least it's expected to. Cisco is the old giant in communications and technology sector, along with Microsoft, Oracle, and Adobe. The difference that I like with Cisco is that it might be an old tech company, but it is also a veteran in a changing technology sector, and so it is definitely used to change. Its leadership is also dependable and smart. I love Cisco's leadership. It is also marketing its new cloud technology and is able to offer new and effective services to different companies for communications and other computer services. I would give it a B short term, A long term. The only reason why its a B short term is because of the mess that's going on in Washington. The only downside is that it is expected to do so well this year but if it fails to meet those expectations it may be a big downside.
Disney - Disney is a diverse entertainment company and is a classic. Through its theme parks, movies, stores, and more, it relies on the discretionary income of its customers. So, Disney really goes with the economy. If the economy picks up, more people spend, Disney gets customers. Disney also goes with its movies as well, and Star Wars may not be up their just yet, but it'll be in theaters in years to come. I would give it a C short term, and B+ long term. Short term the first quarter may not be the best for discretionary income spenders, and so Disney may not be a buy just yet, although its earnings should be positive in February and long term Disney looks to be in great shape. The economy should get going and Disney could be a big gainer in the year to come.
Citigroup - Citigroup and the rest of the bank sector got hurt the most in the recession back in 2008. And since then, they have been gradually coming back. Interest rates are still low, and people are still questioning whether the bank sector can really come back this year. I believe it will, the bank sector should have a big year in 2013, and Citigroup could be in the front running of that. Bank of America might of stole the show in 2012, but Citigroup is poised to make a run. It'll have a new CEO in 2013, and should be a positive factor for the company in the year to come. Some investors may look away from the stock but its EPS estimates look good in 2013. Citigroup would be a great stock to put an option on in 2013. Buying it for 42-46 dollar range in 2013 on an option wold be a great idea and a potentially great way to make money in the months to come. I would give it a C- short term and a A- long term. Short term may not be the best for the bank sector with certain fiscal cliff policies and letting it see how it plays out, although buying an option now for the long term should be a really good idea. I'd say that maybe after a couple of weeks watching it in the first quarter you might have a green light for the rest of the year.
3D Systems - 3D Systems is a small equity stock and many of investors may not of heard it. But I'll tell you why It has helped me out this year. It's up almost 300% in the year in 2012. A mind blowing number and was a true blow out stock in 2012. The most shocking news is, it still has its momentum. It is expected to keep growing in 2013. 3D printers could be the next big thing and it still hasn't made it to the surface yet of its potential. Of course the more people expect from it the more its expectations sore, and so if it does not meet those expectations the stock may not respond well. But with such momentum and continued growth what makes it stop growing? Investors may dismiss the stock based on some weak fundamentals but the growth of 3D printers is huge, and the growth of the stock is tremendous. I would give it a B short term and B long term. The reason why their the same is because the stock could continue its growth in 2013. But it really depends on its first quarter performance, with such high earnings it almost is bound to run out of steam, but the question is when? Whenever it does the stock won't do well, but with 3D printers on the rise, it seems to be just getting started.
Hormel Foods Corp - Not very many investors looking into this stock but with the whole fiscal cliff drama and economy in question this stock could be a good one to watch. It truly depends on how the economy will go in 2013. Hormel Foods sells spam, meats, chickens, sausages, microwavable dinners, and other foods. It is a true economic resistant stock. And if you are a pessimist or think 2013 will be a year of economic this stock is for you. It has a 2.2% dividend yield, and good momentum. Its fundamentals don't look bad. Obviously if you're looking into the consumer staples, there is other stocks you might want to look at like Costco, Pantry, and Coca-Cola, as well as Hormel Foods, but this stock is good because if there really is some economic downturn this stock may bank from that. Although our ratings may surprise you; I would give it a C+ short term and a D+ long term. It really depends on how you think the economy can go, if it goes bad then this stock may capitalize on it, if the economy picks up (like we are predicting) then this stock is iffy. It has some good and some bad to it and because it has such momentum and is on its 52 week high you might just want to sit back on this one.
Ford Motors - Ford was a rising US automaker company until it was hit pretty hard from the 08 recession and is still not bouncing back as much as it is capable of. Automakers had a great year in 2012 and Americans bought a lot more cars, can they sustain and even build on more car sales this year? With a rising economy more people spend which can lead to people buying more cars, and with the available technology out there and affordability will help people buy even more cars in 2013, Ford should keep its momentum and with a hopeful economy maybe Ford can benefit. I would give Ford a C short term and B- long term. The reason why they're not higher is because its momentum might not continue, and just because it has recovered so much it might not continue or if it does it won't be too much.
Express Scripts - Express scripts is the largest US pharmacy benefits manager. And with Obamacare on the rise and the economy picking up, medicare will benefit and so will Express Scripts. Especially with their big baby boomer customers that they have, and that will only increase. Express Scripts is expecting a big year and it should do even better. I would give it a A- short term and A long term. It will really be a big stock in Obama's administration.
Cliffs Natural Resources This might be the first company on an incredible low that I have mentioned and the metals and materials sector got drilled so then why even think of these companies? Well these types of companies will be on a verge in 2013 and they could be coming back in next year to come. Obviously they are in no condition to have a comeback any time soon but later on resources could have a nice future depending on where our economy is in late 2013. I would give it a D- short term C long term. It wouldn't be wise to invest in such a weak sector although because it is so cheap it might be worth looking at and maybe able to turn a profit in the future to come.
RPC Inc. - This energy equipment company and resources should be a big gainer in 2013. Many economists believe the US will be the next big oil company, and with continuing growth and momentum its just getting started. RPC should be a great company to get with the US continuing oil production. RPC and Alon USA Energy should be great companies to own in the long term with these types of American oil companies and an equipment supply company like RPC should be perfect to help both oil and gas in the US. Its fundamentals aren't bad and its earnings should surprise some investors. I would give it C short term and A- long term. Obviously the big US serge for oil and gas will not come over night and so short term this stock may not be the best to own at the moment but by the end of the year it should be a great stock.
Goldman Sachs - Goldman Sachs is the king of kings when it comes to financials. You have to mention this gigantic financial company when you think of investing and banks. And so with the finance sector expected to have a good run in 2013, Goldman Sachs will be in the front run of the financial sector and should be a good buy in 2013. It is a veteran in the financial sector and has a long history in its financial success and should be a good stock in the years to come. Of course it has been involved with controversy over the years it is still an old well run financial company that has been able to keep its grounds and will keep growing. Goldman Sachs has great fundamentals and good earnings, so it should have a good year in 2013. I would give Goldman Sachs a B short term and A- long term. Goldman Sachs and the financial sector need a big year and hopefully will get it. It is a resilient investing company and the only reason why I gave it an A- is because if the markets do have a bad year in 2013 Goldman Sachs has a small downside.
Gilead Sciences Inc - Gilead is a leading and popular biotech stock for biotech funds as well as some investors. Biotech stocks are good stocks to own in 2013 especially are stock of the week, Celgene with Obamacare and lets face it, everybody needs medicine and it should grow in the future to come. We like Gilead because of its earnings and a lot of mutual funds and ETFs own this stock so they also know a lot about this company. Gilead and other funds and stocks in the biotech sector could be potential big gainers in 2013. Although there is some biotech stocks that may not be so successful and in fact could go in the red next year if you don't choose your stocks wisely. I would give it a C- short term and B long term. The research on it may look promising and many funds might own it but its expected earnings are high and if it does not meet those earnings then the stock could falter.
American Water Works - American Water Works is a great stock to own in 2013. This dominant water utility will be able to work in now over 30 states and 2 Canadian provinces. After gobbling up some other water companies this one looks to be a good one. Its got a good cash flow, capital, and its diverse. It might have the good fundamentals. But I would give it a C- short term C long term. The reason why I wouldn't give it anything higher is because it might lose its momentum and how does the economy effect water companies as much as other sectors.
Macy's - Macy's is one of the most dominant retailers in the league. It is a classic and has been making its come back and reaching highs ever since the recession. I looked at Macy's when it was at 15$ and now its at 38$. It can still rise and should be a good stock in 2013, although its earnings are expected to be very high and it may not be able to reach that after a holiday season that what not as well as expected. I would give it a C- short term and C+ long term because of that. Short term because of its earnings and long term because it is at its high.
Madison Square Garden Company - I'm going to the NBA to pick out my last stock to put on our watch list. When you think of the Madison Square Garden Company you probably think of the New York Knicks, or if your a big basketball fan (like I am) then you think of Carmelo Anthony. Well there's more to this company than you think. Madison Square Garden Company is a big media and entertainment company that is very organized in more than just sports. It has 3 big separate parts of the company its media section, entertainment section, and its sport section. And it does very well in all of those sections. It owns big theaters in Chicago and New York as well as Boston. The Obvious Madison Square Garden in New York City brings in massive amounts of money as well. And with the Knicks being hot in the NBA this year, and the economy picking up this could be a great stock in 2013. I would give the MSG a C+ short term and B- long term. Its a great stock and its earnings look good, its fundamentals are decent and it has been crushing the market in 2012, so it might not be able to continue its momentum.
These stocks should be good to research and take a look at and consider for 2013. Be sure to check out my other articles on the blog. Check out my Google + account +Alleyway Investing and check out my Twitter @AlleywayInvest. Alleyway Investing's Twitter has other helpful tips as well. Twitter, Google +, and this blog is written and operated by a Minor. Not Responsible for Loses. Opinions by a Minor.
Cisco - Cisco will have a huge year in 2013. At least it's expected to. Cisco is the old giant in communications and technology sector, along with Microsoft, Oracle, and Adobe. The difference that I like with Cisco is that it might be an old tech company, but it is also a veteran in a changing technology sector, and so it is definitely used to change. Its leadership is also dependable and smart. I love Cisco's leadership. It is also marketing its new cloud technology and is able to offer new and effective services to different companies for communications and other computer services. I would give it a B short term, A long term. The only reason why its a B short term is because of the mess that's going on in Washington. The only downside is that it is expected to do so well this year but if it fails to meet those expectations it may be a big downside.
Disney - Disney is a diverse entertainment company and is a classic. Through its theme parks, movies, stores, and more, it relies on the discretionary income of its customers. So, Disney really goes with the economy. If the economy picks up, more people spend, Disney gets customers. Disney also goes with its movies as well, and Star Wars may not be up their just yet, but it'll be in theaters in years to come. I would give it a C short term, and B+ long term. Short term the first quarter may not be the best for discretionary income spenders, and so Disney may not be a buy just yet, although its earnings should be positive in February and long term Disney looks to be in great shape. The economy should get going and Disney could be a big gainer in the year to come.
Citigroup - Citigroup and the rest of the bank sector got hurt the most in the recession back in 2008. And since then, they have been gradually coming back. Interest rates are still low, and people are still questioning whether the bank sector can really come back this year. I believe it will, the bank sector should have a big year in 2013, and Citigroup could be in the front running of that. Bank of America might of stole the show in 2012, but Citigroup is poised to make a run. It'll have a new CEO in 2013, and should be a positive factor for the company in the year to come. Some investors may look away from the stock but its EPS estimates look good in 2013. Citigroup would be a great stock to put an option on in 2013. Buying it for 42-46 dollar range in 2013 on an option wold be a great idea and a potentially great way to make money in the months to come. I would give it a C- short term and a A- long term. Short term may not be the best for the bank sector with certain fiscal cliff policies and letting it see how it plays out, although buying an option now for the long term should be a really good idea. I'd say that maybe after a couple of weeks watching it in the first quarter you might have a green light for the rest of the year.
3D Systems - 3D Systems is a small equity stock and many of investors may not of heard it. But I'll tell you why It has helped me out this year. It's up almost 300% in the year in 2012. A mind blowing number and was a true blow out stock in 2012. The most shocking news is, it still has its momentum. It is expected to keep growing in 2013. 3D printers could be the next big thing and it still hasn't made it to the surface yet of its potential. Of course the more people expect from it the more its expectations sore, and so if it does not meet those expectations the stock may not respond well. But with such momentum and continued growth what makes it stop growing? Investors may dismiss the stock based on some weak fundamentals but the growth of 3D printers is huge, and the growth of the stock is tremendous. I would give it a B short term and B long term. The reason why their the same is because the stock could continue its growth in 2013. But it really depends on its first quarter performance, with such high earnings it almost is bound to run out of steam, but the question is when? Whenever it does the stock won't do well, but with 3D printers on the rise, it seems to be just getting started.
Hormel Foods Corp - Not very many investors looking into this stock but with the whole fiscal cliff drama and economy in question this stock could be a good one to watch. It truly depends on how the economy will go in 2013. Hormel Foods sells spam, meats, chickens, sausages, microwavable dinners, and other foods. It is a true economic resistant stock. And if you are a pessimist or think 2013 will be a year of economic this stock is for you. It has a 2.2% dividend yield, and good momentum. Its fundamentals don't look bad. Obviously if you're looking into the consumer staples, there is other stocks you might want to look at like Costco, Pantry, and Coca-Cola, as well as Hormel Foods, but this stock is good because if there really is some economic downturn this stock may bank from that. Although our ratings may surprise you; I would give it a C+ short term and a D+ long term. It really depends on how you think the economy can go, if it goes bad then this stock may capitalize on it, if the economy picks up (like we are predicting) then this stock is iffy. It has some good and some bad to it and because it has such momentum and is on its 52 week high you might just want to sit back on this one.
Ford Motors - Ford was a rising US automaker company until it was hit pretty hard from the 08 recession and is still not bouncing back as much as it is capable of. Automakers had a great year in 2012 and Americans bought a lot more cars, can they sustain and even build on more car sales this year? With a rising economy more people spend which can lead to people buying more cars, and with the available technology out there and affordability will help people buy even more cars in 2013, Ford should keep its momentum and with a hopeful economy maybe Ford can benefit. I would give Ford a C short term and B- long term. The reason why they're not higher is because its momentum might not continue, and just because it has recovered so much it might not continue or if it does it won't be too much.
Express Scripts - Express scripts is the largest US pharmacy benefits manager. And with Obamacare on the rise and the economy picking up, medicare will benefit and so will Express Scripts. Especially with their big baby boomer customers that they have, and that will only increase. Express Scripts is expecting a big year and it should do even better. I would give it a A- short term and A long term. It will really be a big stock in Obama's administration.
Cliffs Natural Resources This might be the first company on an incredible low that I have mentioned and the metals and materials sector got drilled so then why even think of these companies? Well these types of companies will be on a verge in 2013 and they could be coming back in next year to come. Obviously they are in no condition to have a comeback any time soon but later on resources could have a nice future depending on where our economy is in late 2013. I would give it a D- short term C long term. It wouldn't be wise to invest in such a weak sector although because it is so cheap it might be worth looking at and maybe able to turn a profit in the future to come.
RPC Inc. - This energy equipment company and resources should be a big gainer in 2013. Many economists believe the US will be the next big oil company, and with continuing growth and momentum its just getting started. RPC should be a great company to get with the US continuing oil production. RPC and Alon USA Energy should be great companies to own in the long term with these types of American oil companies and an equipment supply company like RPC should be perfect to help both oil and gas in the US. Its fundamentals aren't bad and its earnings should surprise some investors. I would give it C short term and A- long term. Obviously the big US serge for oil and gas will not come over night and so short term this stock may not be the best to own at the moment but by the end of the year it should be a great stock.
Goldman Sachs - Goldman Sachs is the king of kings when it comes to financials. You have to mention this gigantic financial company when you think of investing and banks. And so with the finance sector expected to have a good run in 2013, Goldman Sachs will be in the front run of the financial sector and should be a good buy in 2013. It is a veteran in the financial sector and has a long history in its financial success and should be a good stock in the years to come. Of course it has been involved with controversy over the years it is still an old well run financial company that has been able to keep its grounds and will keep growing. Goldman Sachs has great fundamentals and good earnings, so it should have a good year in 2013. I would give Goldman Sachs a B short term and A- long term. Goldman Sachs and the financial sector need a big year and hopefully will get it. It is a resilient investing company and the only reason why I gave it an A- is because if the markets do have a bad year in 2013 Goldman Sachs has a small downside.
Gilead Sciences Inc - Gilead is a leading and popular biotech stock for biotech funds as well as some investors. Biotech stocks are good stocks to own in 2013 especially are stock of the week, Celgene with Obamacare and lets face it, everybody needs medicine and it should grow in the future to come. We like Gilead because of its earnings and a lot of mutual funds and ETFs own this stock so they also know a lot about this company. Gilead and other funds and stocks in the biotech sector could be potential big gainers in 2013. Although there is some biotech stocks that may not be so successful and in fact could go in the red next year if you don't choose your stocks wisely. I would give it a C- short term and B long term. The research on it may look promising and many funds might own it but its expected earnings are high and if it does not meet those earnings then the stock could falter.
American Water Works - American Water Works is a great stock to own in 2013. This dominant water utility will be able to work in now over 30 states and 2 Canadian provinces. After gobbling up some other water companies this one looks to be a good one. Its got a good cash flow, capital, and its diverse. It might have the good fundamentals. But I would give it a C- short term C long term. The reason why I wouldn't give it anything higher is because it might lose its momentum and how does the economy effect water companies as much as other sectors.
Macy's - Macy's is one of the most dominant retailers in the league. It is a classic and has been making its come back and reaching highs ever since the recession. I looked at Macy's when it was at 15$ and now its at 38$. It can still rise and should be a good stock in 2013, although its earnings are expected to be very high and it may not be able to reach that after a holiday season that what not as well as expected. I would give it a C- short term and C+ long term because of that. Short term because of its earnings and long term because it is at its high.
Madison Square Garden Company - I'm going to the NBA to pick out my last stock to put on our watch list. When you think of the Madison Square Garden Company you probably think of the New York Knicks, or if your a big basketball fan (like I am) then you think of Carmelo Anthony. Well there's more to this company than you think. Madison Square Garden Company is a big media and entertainment company that is very organized in more than just sports. It has 3 big separate parts of the company its media section, entertainment section, and its sport section. And it does very well in all of those sections. It owns big theaters in Chicago and New York as well as Boston. The Obvious Madison Square Garden in New York City brings in massive amounts of money as well. And with the Knicks being hot in the NBA this year, and the economy picking up this could be a great stock in 2013. I would give the MSG a C+ short term and B- long term. Its a great stock and its earnings look good, its fundamentals are decent and it has been crushing the market in 2012, so it might not be able to continue its momentum.
These stocks should be good to research and take a look at and consider for 2013. Be sure to check out my other articles on the blog. Check out my Google + account +Alleyway Investing and check out my Twitter @AlleywayInvest. Alleyway Investing's Twitter has other helpful tips as well. Twitter, Google +, and this blog is written and operated by a Minor. Not Responsible for Loses. Opinions by a Minor.
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