Results for Buy Sell Hold
Buy, Sell or Hold: Paychex Inc. Offers a Chance to Profit From the Paradigm Shift in Employment
The U.S. labor picture may not be clear, but investors can profit by acquiring shares of Paychex Inc. (Nasdaq: PAYX) to take advantage of the new employment paradigm.
As the former head of credit and analysis for ADP Capital Management, the investment arm of Automatic Data Processing (Nasdaq: ADP), I know the outsourced payroll industry from the inside out. ADP – a company in which I have kept the stock I received – is the leader in the payroll sector. It focuses on the larger and more stable companies in the United States.
Today, taking into account the latest employment dynamics, and the massive change in the structural characteristics of the U.S. economy, we are going to focus on an ADP competitor – Paychex Inc.
Buy, Sell or Hold: McDonald’s Corp. (NYSE: MCD) Is Undervalued and Offers Exceptional Upside
I first recommended McDonald’s Corp. (NYSE: MCD) to Money Morning readers on Feb. 23, 2009. A few weeks later the stock bottomed out at $50.44. It then took the turn that we expected and went on to rally some 28%, achieving a 52-week high of $64.78 by the end of the year. The stock is now consolidating at these levels, and, from a technical standpoint it appears to be forming a cup-and-handle pattern.
This is important because this type of pattern often leads to explosive breakouts once the resistance level is breached. And while we wait for this to occur, we have the luxury of sitting on a 3.23% dividend yield, which is very safe given McDonald’s very solid balance sheet.
I am confident that the only downside scenario to this investment would be to see the stock move within its well-established trading range for a little while longer. In times of economic and political uncertainty, this stock is a desirable one to hold as a core portfolio position.
Buy, Sell or Hold: General Mills Stock Has Shown Its Short-Term Value and Is Still a Long-Term Winner
On May 26, 2009, I recommended buying shares of General Mills Inc. (NYSE: GIS) stock. Investors who took my advice then would have paid about $52.61 for the stock, which is currently trading at $70.96 a share, resulting in a gain of about 35%.
The stock at the time had been neglected and offered a very compelling risk-reward situation, especially considering the market conditions. But the market often takes some time to recognize tremendous opportunities that to others seem obvious.
That was the case with General Mills, which has been successful for decades. Strong execution and a strong product lineup in a stable business have led to sustained capital formation that weathered the debacle of 2008 relatively well. The 30% drop the stock suffered turned out to be a gift for investors, as it has completely reversed course.
In fact, GIS earlier this month hit a fresh all time high of $72.25. The question now is: Can General Mills keep it up?
Buy, Sell or Hold: Ford Motor Co.’s (NYSE: F) Turnaround Could Put Investors on the Fast Track to Profit
Back on July 28, 2008, I recommended buying a speculative stake in Ford Motor Co. (NYSE: F). The stock has more than doubled in value since then, and I believe it’s positioned for even more gains.
Let me tell you why.
Investing in a company as it turns around from a highly distressed situation is one of the most profitable investments one can make.
Many billionaires, like Wilbur Ross and David Tepper of Appaloosa Management LP, are masters of this style of investing. And they have the profits to prove it.
That’s why I am always looking for these rare situations, which can play a very important role in a portfolio, even with a small initial investment. And right now there are a few very strong signals that the U.S. auto sector, which was demolished by the financial crisis, is going to bounce back stronger than ever.
Buy, Sell or Hold: Keep Your Portfolio Healthy With Campbell Soup Co. (NYSE: CPB)
On June 1 of last year I recommended buying Campbell Soup Co. (NYSE: CPB). It was a contrarian call at the time, since many brokers and independent analysts had rated the stock a “hold.”
That’s because most analysts think of Campbell the same way they think of many other consumer staples businesses – as a stable, slow moving business with no real short-term catalyst for growth.
You see, very few remember the tremendous upside that Warren Buffet realized when he invested in another “dull” staples business, The Coca-Cola Co. (NYSE: KO), just prior to a major overseas expansion.And it’s precisely that kind of campaign Campbell has mounted – expanding its businesses in Russia, China, and other emerging economies to great success.
Buy Sell or Hold: The SPDR Gold Trust ETF Will Rally in 2010, as Recent Dollar Strengthening Loses Steam
Gold prices surged to a record high $1226.10 an ounce on Dec. 3, but have since retreated. Meanwhile, the U.S. dollar has been weak for many months, but shown signs of strength in the past week.
So what’s next for the dollar and the price of commodities like gold?
In order to answer that question we must look at the factors that brought us here: loose monetary policy and government stimulus.
Buy, Sell or Hold: Government’s HeavyHanded Plans Spawn Profits With These Three Top Stocks for 2010
When government boosts its involvement in the economy, there’s a predictable impact on interest rates, taxes, inflation, the country’s currency and even its stock market. As a veteran global investor, I’ve seen this play out time and again in emerging-market economies, where it’s commonplace for government to play an active and heavy-handed role.
I know from my years of experience just what to expect each and every time this story plays out. And that’s not all.
I also know how to turn this special knowledge into beat-the-market profits.
Here in the United States, the Obama administration and the U.S. Federal Reserve are like two elephants that have been put to work brutishly reshaping the U.S. economy. We’re already experiencing the effects of big government involving itself in the private sector. Expect the dollar to fall even more – after year-end profit-taking ends. Also expect a further deployment of government-stimulus money to industries where the United States has a large competitive advantage and can generate domestic jobs.
We’ll be only too happy to ride the resulting economic shifts for profit.
In fact, as part of this installment of “Buy, Sell or Hold” – I’ve identified three of the best profit opportunities for the New Year. The three “must-own” companies – each poised to benefit from these shifts – are: Corning Inc. (NYSE: GLW), The Boeing Co. (NYSE: BA) and Cypress Semiconductor Corp. (NYSE: CY). We offer them to you here as part of a Money Morning “Outlook 2010” Special Report.
U.S. Consumers Feeling More Confident, Increase Retail Spending
The Reuters/University of Michigan preliminary index of consumer confidence increased in November for the first time in three months as the pace of job cuts slowed and shoppers increased retail sales.
The index of consumer sentiment unexpectedly rose to 73.4, much higher than economists had forecast, from 67.4 in November, according to the report released Friday. The December figure exceeds the average of 65 for the first nine months of the year.
Separately, U.S. retail sales rose 1.3% in November, the Commerce Department said Friday. The figure was almost twice as much as the 0.7% increase Wall Street had expected.
Improved sentiment may have helped spending as the numbers suggest consumers were buying aggressively during the crucial holiday shopping season, helping to sustain a fragile economic recovery entering 2010.
Buy, Sell or Hold: Johnson & Johnson (NYSE: JNJ) Brings a Strong Business Model and 100 Years of Experience Into 2010
I know Johnson & Johnson (NYSE: JNJ) very well. I live in the heart of big pharma country: Princeton, N.J. And I have been interacting regularly with many people in this industry, including all levels of the Johnson & Johnson management for years.
Johnson & Johnson is a company that my peer analysts and I have admired for decades. And this well-deserved admiration goes well beyond the financial community.
Let me tell you why.
JNJ has a sound business model that emphasizes the development and marketing of top quality drugs and benchmark consumer products. Its strong and stable profit margins – with gross profit north of 70% – and its consistent growth over more than a century are matched by only a handful of companies.
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