The clock is ticking away the time before the year ends and I have only begun to sort out the possibilities. In Part 1 of this series, I discussed breaking up my potential picks into three categories: contender, on the fence, and out of the running until the 10 stocks have been identified.
Four contenders have been considered so far: American Eagle Outfitters (AEO), Anadarko Petroleum (APC), Anglo American ADR (AAUKY) and Diageo plc (DEO).
Six more are included in today's review: EZCorp Inc. (EZPW), General Electric Company (GE), Wells Fargo & Company (WFC), Annaly Capital Management ( NLY), Intuitive Surgical Inc (ISRG) plus Berkshire Hathaway (BRK.B). These include the remaining five from 2009 and one more familiar to most investors.
The market continues to befuddle the bears as the third quarter earnings and stock prices continued to move in a positive direction.
During this period Washington has taken charge of the auto industry and helped prop it up with the "cash-for-clunkers" program. They continue to subsidize the real estate market with first-time home buyers incentives, and very low interest rates. The banks are being refueled by the Federal Reserve with interest rates as low as zero, while all the time currency stability has been sacrificed. This has driven gold prices to new highs.
This is the third review of my 2009 stock picks through September 30 (see: Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more). This years picks have annihilated index comparisons, so much so that I must attribute some of my good fortune to luck. However, I do believe the original reasoning was sound and the outlier nature of the gains certainly a result of an oversold market living in fear.
One of my wonderful friends, Ms. P, asked me for some guidance on how she might allocate $50,000 currently earning peanuts in a money market account. Though she is decades from becoming a grandmother, after a brief discussion about her financial parameters, it became clear to me that she was looking for a "granny fund."
In reality, my recommendations would be suitable, and perhaps desirable, for many passive investors as well.
The $50,000 is a portion of money Ms. P has set aside to purchase a home, which might happen in six months, but could also be pushed out further, depending on the economy and her situation. Basically, she wants to cover all her bases because she might need the money at any time and does not want to be caught short, while at the same time she would like to generate some revenue without taking any big risks.
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 list of solid dividend payers are not likely to get anyone excited about future growth prospects like some small cap tech company with a hot IPO, but in these uncertain times being able to diversify into a reliable dividend paying stock might work while you ride out the economic storm.
Bank money market accounts, CD's and treasuries are not all that compelling right now. While it is wise to keep some cash handy in these places, you need not put all your resources there.
It is to be expected that a utility would show up on the list, given the strong recurring revenue and cash-flow and Duke Energy (NYSE: DUK) paying 6.39% is that company. I have written many positive posts about Duke and my view has not changed.
The second quarter is now behind us and for the most part it was a positive one in terms of the market pushing higher almost 40%. This is the second review of my 2009 stock picks through June 30 (see: Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more). There was a lot of talk about green shoots this past quarter as Wall Street was looking for any small bit of optimistic data to support the market.
The federal printing presses continued to run at full speed pushing the dollar lower and oil prices higher. While the feds were printing money to cover their deficits, the States do not have that same luxury and many of them are having trouble balancing their budgets to the tune of billions of dollars.
The year started off with continued turbulence. We have a new president, Barack Obama, who will boldly lead us where no man has gone before --trillions further in debt, most likely.
Not that this is his doing, but it is his chosen calling, and right now he is calling out to the Congress to move forward on various contentious budget proposals and continued federal stimulus packages.
The 2009 clock is ticking loudly. The year has started off with a lot of continued turbulence. We have a new president, Barack Obama, who will boldly lead us where no man has gone before -- two trillion further in debt, most likely.
Not that this is his doing, but it is his chosen calling, and right now he is calling out to the Senate minority to compromise, and get yet another federal stimulus package off the shelf and out the door.
The first trading session of the 2009 may have brought some optimism with it as markets rallied, but it's difficult to imagine all our troubles over after a year that set one bad and worse record after another. Stocks mirrored the global economic slowdown brought on by the housing market and the financial markets crises.
Still, there are many who still seek to invest in hope that one day they could get nice returns on their investments. While the recent volatility in the stock market benefited some shrewd day traders, most investors know to stick to a long-term, stable investment plan.
To help achieve some of these long-term return, BloggingStocks contributors continued to suggest some companies to invest in, as well as some to avoid:
Anybody have capital gains to show this year? I didn't think so. Not unless you were shorting the market, and in particular financials. I got clobbered with everyone else. There were not many places to hide. Picking winners was like guessing where each piece of debris would land after the tornado moved through town.
The average crystal ball is looking quite foggy about now, nevertheless I have rummaged throughout the stock market to select nine stocks that I think offer more reward than risk. The market is priced for the worst in so many cases that I think the list could have included 50 companies without too much trouble.
In 2007 and 2008 I owned some but not all of the picks for the year. This year I own all of the stocks and they were all acquired in the latter part of the fourth quarter for a new portfolio.
Two years ago I assembled a list of stocks for 2007 and last year I did the same for 2008. The first list remains ahead of the market while the latter did poorer than the market at last check. In both cases I owned many of the stocks. In putting together the 2009 list I am doing something different. I own all the stocks in a new portfolio aggregated in the last quarter of this year.
This week was saved today as the White House finally approved a $17.4 billion auto bailout package using TARP money. Stocks were stable after two days of decline, but all-in-all the week wasn't bad. It's the third week now that stocks, while perhaps having big swings daily, end up not so bad.
Once again, this stagnant time could be exactly the time investors may want to look for long-term deals. They may have to hold on to them for a while as the markets continue their up and down swings. But eventually, if it's a few months or a year from now, stocks will start to recover and cheap deals bought today may be big gainers.
But where are the deals? BloggingStocks contributors added some ideas this week:
The Walt Disney Company (NYSE: DIS) is one of Jamie Dlugosch's favorite blue-chip names. Analysts expect the company to make $2.12 per share in the current fiscal year ending in September. If the company earns $3 per share down the road with a 15 multiple, Disney shares could double. In the meantime, it pays 1.5% dividend yield.
For 2009 I will be tracking a real portfolio created this quarter in scary times, when everyone is second guessing themselves, the market, and the economy. Last week I wrote Chasing Value: Annaly Capital Mgmt -- from watch list to buy noting that Annaly Capital Management (NYSE: NLY) was acquired, for among other things its 15% yield and basic stability. It trounced the market in 2008, but the yield by itself was very rewarding and I expect that to continue.
Yesterday General Electric (NYSE: GE) dropped over 8% from $17.39 to $15.96. This triggered a buy order I had in at $16.00, after a negative outlook by rating agency Standard & Poors suggested that there was the potential that GE could lose its prized AAA rating sometime in the next two years based on stress it was feeling on its balance sheet related to its financial services division, and GE's uncertainty in other businesses.
It was only a couple of days ago I posted Serious Money: What's on your watch list? suggesting you had to be ready because you never know when an opportunity might arise to acquire a value proposition.
Then yesterday the market was up but sluggish in anticipation of Federal Reserve chairman Ben Bernanke possibly announcing a cut in the overnight rate, so I pulled the trigger on the one stock I could get at the right right price that was the most interest rate sensitive.
Annaly Capital Management (NYSE: NLY) is one of the stocks mentioned in Fortune Magazines "Ten Promising Stocks for 2009" and is currently paying almost a 15% yield at Friday's closing price of $14.92. The company borrows money at short term rates and only invests in long-term Federally backed mortgages. They have avoided subprime loans and derivatives entirely.
I bought NLY for $14.80 per share locking in at an actual yield of 15.01%. Sure enough, Bernanke slashed rates to the bone letting the rate float from 0% to .5% and the DJIA jumped finishing the day up several hundred points, while Annally closed at $15.84, one of my big gainers for the day.
The clock is ticking away the time before the year ends and I have only begun to sort out the possibilities. In Part 1 of this series, I discussed breaking up my potential picks into three categories: contender, on the fence, and out of the running until the 10 stocks have been identified.
The market continues to befuddle the bears as the third quarter earnings and stock prices continued to move in a positive direction. 
One of my wonderful friends, Ms. P, asked me for some guidance on how she might allocate $50,000 currently earning peanuts in a money market account. Though she is decades from becoming a grandmother, after a brief discussion about her financial parameters, it became clear to me that she was looking for a "granny fund."
In a race, when the yellow caution flag is out drivers are prohibited from advancing their position, and are subject to penalty.
The following list of solid dividend payers are not likely to get anyone excited about future growth prospects like some small cap tech company with a hot IPO, but in these uncertain times being able to diversify into a reliable dividend paying stock might work while you ride out the economic storm.
The second quarter is now behind us and for the most part it was a positive one in terms of the market pushing higher almost 40%. This is the second review of my 2009 stock picks through June 30 (see: 
In December when I posted 
The 2009 clock is ticking loudly. The year has started off with a lot of continued turbulence. We have a new president, Barack Obama, who will boldly lead us where no man has gone before -- two trillion further in debt, most likely. 
Anybody have capital gains to show this year? I didn't think so. Not unless you were shorting the market, and in particular financials. I got clobbered with everyone else. There were not many places to hide. Picking winners was like guessing where each piece of debris would land after the tornado moved through town. 
For 2009 I will be tracking a real portfolio created this quarter in scary times, when everyone is second guessing themselves, the market, and the economy. Last week I wrote 
It was only a couple of days ago I posted 
Why is gold marching higher? Ask the central bankers
Newspaper ad revenue of 28%, 8 quarters of double-digit drops
Closing Bell: Earnings working against stocks (BCRX, DELL, DHI, INTC, LEAP, PCS)
