Investment Stocks and Ideas - Ready for analysis by Caps members please
I have put together a list of things I am looking for in stock market investments. I also have a list of stocks that I am starting to look at, although I have not really examined them much yet. I am putting both lists up here. If they are good, I invite you to use them. MUCH More important though, I am hoping that you will look with a critical eye, especially at the stocks. If you see a problem or a particularly great stock among the group, then please let me know about it.
These are the tests that the stocks have to meet. There are a lot of good companies that have had stock prices beaten down by an overall bad economic market condition. I am looking for the bargain rates on good companies that dropped during the panicked reactions of the last months.
The companies need to produce a good product or service and have a proven track record of doing this so well that the company's product or service is in demand now or will be in demand when people have money to spend.
The companies will need to have good solid management with people in the top positions who have an interest in seeing these companies do well. Owner/managers are best, or others who have been in the lead positions long enough to give some idea of how the companies do under their leaderships. No big changes in this area should be expected.
Money should not be a problem. There should be manageable debt (or even better, none), and cash on hand plus lines of credit, where needed, should be enough to see the companies through to economic better times. An upscale restaurant will need more capital to survive this recession than a small inexpensive spot that is getting a bigger crowd right now.
My guide for consistency is going to be a 3 year chart of stock prices. This will (I hope) give me a better idea of the strength of the stock over a longer and more stable set of market conditions.
The product or service needs to be something that will be attractive to consumers either now (P&G) or later when the economy starts to recover. An example of the second might be vacation travel or perhaps computer and other electronic gear that has to be postponed right now to concentrate on food and gasoline purchases. When there is money to use for "fun stuff," computer hardware, software, upgrades may be on the list for a lot of people, as will cars or TV's.
A few stocks that I am checking for "fire sale prices" include Disney, Microsoft, Intel, Proctor & Gamble, Apple, Coke, Pepsi, Dell, Garmin, WalMart, Lowe's, Home Depot, Logitech, Kraft, Altria (the tobacco side of Phillip Morris), Costco, Marvel, Johnson & Johnson, and some Vanguard Funds, VTI, VWO, and VEU. Also I will be looking at USO and USL.
That's it. Strategy planned and ready for research. If you know that one of these stocks is a real winner, let me know. More important, if you look at this and see me throwing money down a well, please say something!