The Stock Market Is Overvalued

I am as big a stock market bull as anyone. The market has had a great run over the past few years and investors who stayed the course have made a great deal of money. I believe however a pullback is coming. It is simply too hard to find great values in the market now. Many great companies are trading at values (P/E, P/S, BV) that are simply too high based on their financials. (I love Amazon but a 1400 P/E ratio is outrageous for almost any company. [Read more…]

Is It Time To Sell Stocks?

The stock market has been on a roll for quite some time now. The Dow Jones Industrial Average is approaching 13,000 and the economic outlook is looking better. The United States economy has added more than 200,000 jobs and the unemployment rate is down to 8.3%. There is more good news today about how the number of available jobs is at a three year high.Money is pouring into the market as investors are falling in love with stocks again. So, should you start piling fresh cash in the market? [Read more…]

Good News For Bank Of America

One of the biggest dogs of the Dow in 2011 was Bank of America (BAC). The nation’s biggest bank had a hard time in a market full of rising stocks. Shares of Bank of America were down 60% for the year as the stock fell to $5 a share. The bank has been under pressure as it is one of the stocks that has been most affected by the economic downturn and litigation. There war even rumors that the bank would be headed to the market for a capital raise. The bank did however receive some good news in improving economic conditions. [Read more…]

Do Not Buy Groupon

Last week, I wrote about a number of stocks that I felt were overvalued based on their share prices. I did not feel that the stocks mentioned were all bad companies but that the multiples were simply too high. Since that time one of the stocks (LinkedIn) has come tumbling down. LinkedIn has dropped from $80 a share to the $67 range. I do not think that this is the end of the selling as it appears that early investors have been selling off their positions. LinkedIn’s situation is eerily similar to that of the recently launched IPO of Groupon (GRPN). [Read more…]

BP Is Back As A Dividend Play

It wasn’t that long ago that BP PLC (BP) was one of the most hated companies in the world. The company had a big oil spill in the Gulf Coast region and suffered major hits to its profitability for a year. BP slashed its dividend and things looks bleak. I even considered selling some of my shares because the free fall was so great. Now things have stabilized and the company has even reinstated its dividend. BP looks like a solid investment again. [Read more…]

Stocks I Would Sell

It isĀ  just as important for investors to know when to exit as stock as it is for them to know when to enter. The previous month was good to a number of different stocks and has caused some of them to trade at premium valuations. You never want to be caught holding a stock with a lofty valuation when the market comes tumbling down. Here are a few stocks that look pricey to me. [Read more…]

Meg Whitman Is Making The Right Decisions At Hewlett Packard

It has only been a few short week since Meg Whitman took over as CEO of Hewlett Packard (HPQ) and things are already starting to look up. HP has scrapped the plan to abandon one of its core businesses since dumping its previous CEO. In the short time that Whitman has been at HP she has helped to reestablish investor confidence in the company. Whitman may not have been my choice for CEO of the technology giant but she is far better than the previous CEO.

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Bank Of America Announces Earnings

Bank of America(BAC) announced third quarter earnings today. I paid particular attention to the announcement because I have a pretty sizable position in the banking stocks. Bank of America has been one of the worst performing stocks in the market during the past year as shares are barely trading above $6 per share. I have hung in there with the bank despite several missteps because my average purchase cost is so low. So, how did the banking giant fare today? [Read more…]

Stocks That I Have Been Buying

The recent ups and downs of the stock market over the past few months has given me an opportunity to take some chances on some stocks that I feel are undervalued. I have been using down market days to build positions in few stocks. Here are my top 3 buys over the past few months. [Read more…]

I Am Still Not Buying Netflix

Netflix (NFLX) continues to drop like a rock with shares plunging to $107 a share today. The stock has been punished by the Street over the past few months. Shares are not severely overvalued as they have been for years. This is causing some investors are dipping in and buying shares of the company. Could this be a big mistake? [Read more…]