In a race, when the yellow caution flag is out drivers are prohibited from advancing their position, and are subject to penalty.In the stock market no such rule applies. When the caution flag goes up it is a sign you may be nearing an opportunity to advance your position, and it would be foolish not to do so. I think the market has definitely had the caution flag up the last two weeks as we enter earnings season.
I have written several articles regarding watch-lists encouraging our readers to be prepared for buying opportunities, and as I look at my watch-list it appears that many stocks are nearing prices that would make it attractive to add to my position.
The following are some of the companies on my watch list that have come down in price lately. If I wrote on the subject stock recently that is indicated as well.
Anadarko Petroleum (NYSE: APC) appeared last in Chasing Value: Anglo American upgrade/downgrade
Annaly Capital Management (NYSE: NLY) provides a very high yield Chasing Value: Annaly Capital Mgmt -- from watch list to buy
Olin Corp. (NYSE: OLN) was a value when I first posted here and is better today Chasing Value: 5% yield from Olin, a 'boring' old company
Verizon Communications (NYSE: VZ) has come up many times recently but the best case is made here Chasing Value: AT&T and VZ, high yield plus safety
Williams Companies (NYSE: WMB) was first mentioned in Chasing Value: Williams has the pipes and it's not blowing smoke and again in this first of a five part series Serious Money: Better than Apple, Google, Microsoft & Berkshire Hathaway, Part 1
The next five companies, also on my watch-list are stocks that I would love to load up on, but are not at levels that peak my interest today.
Anglo American ADR (NASDAQ: AAUK) has been in many M&A discussions recently Serious Money: Anglo American - Xstrata merger?
BHP Billiton Ltd ADR (NYSE: BHP) and Southern Company (NYSE: SO) were discussed earlier this week: Serious Money: Three more stocks that beat the market: BHP, RTN, SO
Chevron Corp (NYSE: CVX) was among Serious Money: Five high-yield, safe, diversified stocks
Diageo PLC (NYSE: DEO) has run up recently but I like this company very much as I wrote Sin stocks are blessed -- Diageo rewarding investors
You will note I have a heavy bias toward energy, metals and minerals. These are things that are doing well now and are likely to stay strong when - not if - we see a high level of inflation in a few years. They also all pay a nice dividend and have the cash flow to support it.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of most of these stocks with the exception of BHP abd CVX.
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