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.
I have been buying Ford because the stock is simply too cheap to pass up. At $9 a share I felt like the stock was a real bargain and has great long term growth prospects. Ford has been able to trim costs by renegotiating its union contracts and eliminating a lot of its debt. The company’s balance sheet contains to get improve each quarter. Ford is positioning itself for long term growth by creating better vehicles and doing a great job of executing its long term strategy.
Bank of America (BAC)
I am not a fan of the bank’s new debit card fee rollout. I think that the new fees are too much but I think that the bank will retain most of its customers simply because people are too lazy to leave the bank. People like convenience and that is what Bank of America provides. This is a speculative play because the bank faces a mountain of lawsuits that it make take years to recover from. I actually think that Bank of America could emerge from this crisis in a few years as a much smaller stronger bank.
Arcelor Mittal Steel (MT)
I have been a longtime shareholder of Mittal Steel but when the stock hit the teens I started buying again. The stock was especially attractive when the yield went over 4%. The stock may not recover until the global demand for steel products picks up again but the income makes the stock worth holding in the meantime. I feel like it is the cheapest steel play in the market.
Tags: undervalued stocks