Well, the market finally took note of CB, boosting shares this summer, hence I'm Reiterating my Buy rating for Chubb, first recommended on May 29, 2009 at a price of $39.65. If you bought CB then, you're up about 23%.
Chubb is not as cheap as it was in May, but there's still an opportunity to earn an outsized gain from these levels. The First Call FY2009/FY2010 EPS estimates for CB are $5.39 to $5.34.
More-cautious investors should wait until CB closes above the $50 level, which represents psychological resistance, for three consecutive days.
Stock Analysis: Chubb is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in CB now; then buy another 25% in three months, if U.S. and global conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your CB position before December 2009. Sell/Stop Loss if you were to buy shares in this company: $22.
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
More-cautious investors should wait until CB closes above the $50 level, which represents psychological resistance, for three consecutive days.
Stock Analysis: Chubb is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in CB now; then buy another 25% in three months, if U.S. and global conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your CB position before December 2009. Sell/Stop Loss if you were to buy shares in this company: $22.
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
