I have been looking for value stocks to invest in since the market has been topsy turvy. There are several sectors that contain stocks with compelling valuations. One of the sectors that has been beaten down the most is the steel sector. There are a number of steel stocks that are trading at really low valuations because of the global economic slowdown. These steel stocks could yield big returns for years to come. [Read more...]
Value Stocks Or Value Traps?????
May 21, 2011 By 3 Comments
The recent market pullback has caused a number of companies to see their share prices fall. These pullbacks are creating a few more values in the marketplace for investors. It is however important for investors to differentiate between value stocks and value traps so they don’t catch a falling knife. Let’s take a look at a few companies that have dropped in recent days and see if they are value stocks or value traps.
Stocks That Turned $10,000 Into $100,000
May 16, 2011 By 4 Comments
I was recently reading a USA Today article about 11 stocks that turned $10,000 into $100,000 in just 2 years. This is not a list of older established companies like Microsoft (MSFT) and Walmart (WMT) that you could have bought in the 80′s. Instead the list includes a number of companies that you could have bought over the past two years. Let’s take a look at the 11 stocks that made the list and what they have in common.
3 Value Stocks That Are Good Buys
May 10, 2011 By 9 Comments
There are a lot of overvalued stocks in the market right now. As great as Neflix’s (NFLX) and Amazon’s (AMZN) business models are I would not touch either stock because of their massive valuations. I would never pay 50 times earnings for any company. These companies trade well above those levels. I prefer to shop in the value section of the market. Here are a few companies that are looking like decent value stocks.
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US Steel (X) Is Getting Cheap
June 24, 2010 By Leave a Comment
Keep an eye on shares of US Steel (X). The stock has dropped to $42 per share. I will be looking to start a position in US Steel in the 30′s. US Steel is currently trading at just 7 times next year’s earnings projections. Even if the company’s 2011 EPS is off by 25%, US Steel would still trade at just 9 times earnings. The stock would be an absolute steal in the 30′s.
4 Potential Value Plays
January 30, 2010 By 4 Comments
This is a list of stocks that I am watching because the prices appear to be good values. I have no position long or short in any of these companies.
1. Verizon (VZ)- Verizon is purely a dividend play for 2010. Growth will be tepid this year as the company’s landline business is shrinking. The growth for Verizon won’t come until 2011 when the telecommunications company is rumored to be adding Apple’s popular iPhone to its product offerings. According to the Wall Street Journal, “only 26% of the company’s annual-subscriber (retail) wireless customers held smartphonesor multimedia devices.” There is tremendous growth potential in selling smartphones and data plans to these customers.
2. Exxon Mobil (XOM) -At $64 a share the oil giant is falling into buy territory. The oil bubble seems to have burst but with global economies recovering oil demand should be on the rise. The recent acquisition of XTO gives Exxon more exposure to the natural gas sector. With the recent market drop investors will flock to solid large cap names with strong balance sheets like Exxon.
3. Goldman Sachs (GS) – I have learned from past experience to never bet against Goldman Sachs. Wall Street is expecting Goldman Sachs to earn anywhere from 17.50-18.75 per share for the current year which means the best investment bank in the world is selling for just 8 to 8.5 times 2010 earnings.
4. Apple (AAPL)- There may be a little more downside in Apple but not too much more. Shares have been punished relatively quickly. The stock has cooled dramatically from the $215 level just 10 days ago. The stock was due for a pullback sometime and maybe the market’s lukewarm response to the iPad was the reasoning. Either way shares look like a decent buy in the 180′s.
