Friday, January 3, 2014

Stock Watch List 2014

After Some research and consideration I have came up with a list of stocks to watch for 2014. At the end of the year I will see how I did.

Apple - Apple addressed its employees with a letter saying that big things are happening at Apple in 2014. Whether or not it was just a pep talk at new years is up in the air. Apple's fall from its $700 level and Carl Icahn trying to give advice to CEO Tim Cook all looks fishy to me. As I wrote about Apple last year, I'll say it again, Apple does not look like the same Apple we saw on the rise in the mid 2000's with Steve Jobs at the helm. That being said lots of mutual funds still carry Apple as its top holder. Apple's customers still have a high percentage of returning to its products, a good thing, plus Apple has tones and I mean tones of cash flow it can either reinvest back into the company (like Icahn says) or raise its already high dividend, or sit on it like its been doing. It finally stuck a deal with China's largest mobile carrier; another good thing, but will its success run to China or not is still in question. Keep in mind while Apple had an OK year, the tech heavy NASDAQ went up 40% while Apple was just staying behind. Obviously if Apple comes out with new products instead of just updating their tiring product line Apple will be a stock to look at but don't expect it to be as revolutionizing as the Ipod. I'd Give Apple a C short term and B- long term. It depends on the market and whether or not Apple really has any big cards up its sleeves.  


Ford Motor - I recently added Ford to my portfolio for the specific reason of its under evaluation. To me I think Ford is undervalued. Its sales for 2013 was strong and its expected to have an even better 2014. It has recently fallen below its moving average and to me that signals a buying opportunity. I had ford on my stocks to watch last year and it was a steady moving stock and still returned some gains, look for 2014 to be a year that Ford gets going. I would give Ford a B- short term and A long term. Short term its overhead has to get passed some negative publicity of the costs it is taking to get its new product line going, but long term it should pay off.

Cliff Natural Resources - Cliff Natural Resources got a bad rap from me last year, and for the right reason, natural resources companies had a real rough 2013. The sector has been drilled and was in the red for most of last year. What intrigues me about Cliff Natural Resources was its second half of 2013. It picked up a 56% gain, in all honesty the stock may be something to stay away from in 2014, but its still an interesting stock to watch for the next couple of years. I would continue my bad rap for Cliff Natural Resources and give it D short term and C- long term. Long term the stock could have a better year than it did.

RPC Inc - RPC Inc was also in my stocks to watch for 2013 because of the Obama's administrations promise on self sufficient energy here in the U.S. Instead of investing in heavily regulated energy stocks, I found the guy that makes the shovel for all the gold miners. RPC makes the equipment that a lot of independent oil and gas companies use. It went up 51% last year and it should have another solid year. I'd give RPC a B+ short term and A- long term. It should be a durable stock to watch for 2014.  

American Water Works - I had American Water Works on my list of stocks to watch last year and it did OK considering what the market did, the reason why its back on the list is because its a great long term investment. American Water Works has a bunch of subsidiaries that are regulated by the U.S. That makes American Water Works a regulated company which means it doesn't fluctuate too much. Its got a .30 beta value and it really won't move too much. Water will always be an interesting investment as the population keeps booming in the future to come. Since its a utility, I'll give American Water Works a B- short term and B+ long term. Remember to treat it as a long term investment. 

Urban Outfitters - Urban Outfitters is a large retail company that seems to be one of the only large retailer that is not near its 52 week high, like most stocks are. It had a bad 2013 and since it is a cheap retail company doesn't mean you should just jump into it. I would give Urban Outfitters a B- short term and a C- long term. Short term holiday season and cloths for teenagers seem to be in an uprising but long term it will be depending on its summer output.

Nordstrom Inc - I'm going to use Nordstrom as a short term investment. This specialty retailer had an OK year in 2013 and honestly in the long term depending on the market, I don't expect this stock to surprise me in a huge upward run. Why I am writing on it is specifically for short term. I would give Nordstrom a B+ short term and C long term. I believe Nordstrom will meet and have a great earnings report with a good holiday season. 

Nike Inc - Nike is one of the largest retailers when it comes to sports wear and almost every athlete that I come in contact with, will be wearing something from Nike. Nike has an enormous amount of market cap and with the Olympics coming up Nike will sure be in full attendance. I will give Nike a B- short term and B long term. I think that it will be a steady moving stock. It was a better P/E ratio compared to other companies at their 52 week highs. Its got room to continue its run.

Emerson Electric Co - Emerson Electric is new to the list this year and in summary Emerson is a diversified industrial company. Its got decent fundamentals and it has had great gains throughout the year. Emerson isn't really volatile but its been etching out good gains throughout the years and its momentum shouldn't fall out on it. Again it might do as the market does so don't be surprised if it pulls back. Emerson Electric reminds me a lot like GE, and they are pretty similar, although GE is even more diversified. I would give Emerson Electric a B- short term and B- long term. It looks like a great stock, but it has to break through hits moving average for it make some good profits.  

The TJX Companies - TJX is really just TJ Maxx. It also has other Homegoods under its name but I'm going to refer to it as TJ Maxx. Since Christmas is over the season's earnings report will be key for TJ Maxx, the company will do as retailer sales do. But TJ Maxx's advantage is its lower prices appeal to a more economical shopper, which seemed to be more popular for the shopping season this year. I would give TJ Maxx an B+ short term and B long term. The small drop off its only because I'm reluctant to think it will continue momentum into the summer.

Chesapeake Energy Corporation - Chesapeake is new to the list but it isn't old to me, I've had my eyes on this energy stock for awhile and if you are looking to buy energy stocks this stock seems to always be mentioned. A lot of energy mutual funds have Chesapeake in its top holdings and its a stock that was up 59% last year. The best thing is, it can still continue its rise. If you are looking at energy stocks, this one is the one to look at. Only downside is the dividend yield is not that inviting and its regulations it goes through by the government. I'd give Chesapeake Energy a B+ short term and A- long term

Gold - Yes just plain gold. Research to find a gold stock but just the commodity itself is what I'm talking about. Make sure your an experienced commodity trader, but Gold has been in a lot of investment conversations because of how much it as fallen in 2013. Gold and the Dollar mostly carry an inverse relationship and the Dollar had a strong year, so in turn, Gold had a miserable year. Many people believe Gold is so low that there is a huge buying opportunity. Remind yourself this, why would the same forces that drove Gold prices down stop? If the Dollar is poised for another good year, than Gold could continue to fall. I say Gold is a C+ short term and D long term. I really think the market can have a decent year, and now that Yellen is assuming Bernanke's role, she is rumored to continue in the same direction that Bernanke was headed 

Facebook Inc - A lot of people have been asking me to write about Facebook. Being in the so called Facebook generation many old school investors that are curious about Facebook usually look to younger people's opinions to whether Facebook is the real deal. Facebook was designed for connecting people, and now since Zuckerberg took Facebook public, he has been trying to develop ways for Facebook to make money. Advertising seems to be Facebook's biggest revenue and it still scares me as whether or not it can be sufficient enough or not. Teens like me still slightly use Facebook but mostly use Twitter, its all business advertising when it comes to Facebook. I give Facebook a C- short term and C+ long term. Honestly I am not shorting nor buying Facebook, watching it is my plan for now. It seems a little overvalued though.

Read my stock of the weeks to look at other stocks to research. These stocks should be good to research and take a look at and consider for 2014. 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 Jon Morris. Not Responsible for Loses. Opinionated Investment Ideas 

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