If you’re following along - and why wouldn’t you be? - you would have been reading about my pride and angst over my investments and their consequences. It’s a struggle, but fun. Strange, and fun.
I didn’t sell anything - much to my joy and dismay. Square has begun to trade along with Bitcoin, and Pfizer seems to have found a new life with the FDA approval of a new drug. Such is life for drug companies. It’s the risk-reward scenario that we embrace when we invest. The stock has approached its 52-week high, and I suspect that it has room to run here - and my patience is being rewarded. I no longer view the stock as a potential sell, especially with the new tax plan.
Darden Restaurants reports this week. I don’t own it, but the “pin action” may translate to my favorite DelTaco (TACO) and its struggling $12 stock price. In other news, the new 21% corporate tax rate may help dissuade DelTaco’s current 40% tax rate and help them control some of their labor costs, which have been dragging down the stock price. I still view it as a growth story, and would encourage buying in the $12 range.
Sometimes, I wish I could avoid the enthusiasm of the market. I began dribbling money into Under Armour (UA) a month ago, to the extent that I accumulated 20 shares. Today, a major brokerage house released a “buy” recommendation on the stock, and it shot-up to $13, which is way beyond my buying price. If I owned several hundred shares, I’d be a seller on Monday morning. But, since I own a paltry amount, I’m going to hold and wait for it to settle down - either through a disappointing quarter or the natural reaction of the market. Whatever - I believe that buying UA at a price over $12 is setting yourself up for a disappointment, and I’m not in the game for disappointment. I’m holding here, and waiting for a better buy price.
So, what now? I like Salesforce (CRM) here, and would buy it in the 103-105 range, as it appears to be worth around $130.
Skyworks (SKWS) is interesting.
ConAgra (CAG) reports earnings this week, and the company has been a consistent performer for decades. I’d take a look.
On Thursday, Foot Locker and Nike report. Their earnings could foretell what happens with Under Armour and other apparel retailers like Hanesbrands (HBI) that are on the brink.
The (ugh) Christmas season has investors excited over retail stocks like Macy’s (M) but I’d wait until the final numbers are in before I got too excited. At the current level, I’d be a seller of M, but that’s just me. It was appealing at $18. At $25, it’s a cinch to sell it.
There are lots of mergers and acquisions going on in the media space. The Disney/Fox merger is huge. Your Hulu account will change, and if they get Federal approval, it’s a game-changer. You could look into Discovery Networks (DISCA) as a potential investment and takeover candidate. The stock is under valued, but they have never failed to disappoint. If you buy, anticipate a merger and/or takeover. It’s undervalued from a financial standpoint, but stock-wise, it’s a big risk. March forward
Banks. The new tax plan says that banks will be a promising investment. Pick and choose. Big banks like JP Morgan, Citibank, and Bank of America are so-called no brainers - which would imply that you have no brain if you invest. On the contrary. You can also Check out a larger regional like Key (KEY) and Beth Mooney, who runs the joint, is among the best minds in the industry. You could do a lot worse, and not much better.
As for me, I’m looking at Thor Industries (THO), Salesforce (CRM), big banks (XLF) Emerging Markets (EEM) and Skyworks (SKYW) as potential investments, but I’m struggling over what to sell to buy into them.
If you have cash to put to work, those are my recommendations.
Go forth and multiply.
