Sunday, October 23, 2011

"Diversify your IRA or 401K by purchasing stock in dollar blocks of $1500-$2000 to keep things managable for you"

Dow Jones Industrial Average 11808.79 (UP) Week ending 10/21/2011

I am always looking for stock positions to diversify my IRA portfolio that tend to be broken down into blocks of $1500 to $2000 to form building blocks. So in a $10,000 portfolio you may have 4 or 5 stocks
that are Large cap or Mid cap , then maybe one or two stocks that are Small capitalization companies. So I am looking for good fundamental value as far as price to earnings and revenue growth and preferably a stock that I can buy a fair amount of shares of. In this current trading environment it does not hurt to have a dividend.

So what would I buy on Monday?  NOKIA Corp. ADR (Symbol NOK, $6.61) , (logo the work of , Design and Marketing blog)                                                                                        
You could buy 250 shares here for $1652.50. This would fill a large cap stock position in your portfolio. NOK pays a nice dividend yield of 7.26 percent. Revenues and earnings have been sickly here the last year because of a short term lack of competitive product to compete with the Apple I-phone and multi-platformed Google Android phone lines. However the word is that the Nokia smartphone with the new simplified Microsoft phone interface in it will be out for the Christmas sales season. I think this new simplified phone interface will be well accepted internationally. Remember, even in an off year,this company did over 58 billion in revenue.

Another stock I like right here is NVIDIA Corp. (Symbol NVDA, $14.48). You could buy 125 shares for $1810.00. NVDA has a long term growth rate of 16.91%. Earnings for 2012 looks like $1.00 per share and for 2013, $1.18 per share. The company's "best 3D technology for the PC just got better with the introduction of new NVIDIA(R)3D Vision(TM) products, which deliver greater realism and immersion than ever for 3D games, movies and photos".  The company pays no dividend but has the major plus in these leveraged times of having zero long term debt. Tech stocks as a sector seemed to be ready for some upside movement in this 4th quarter.

People tend to diversify by market sectors, but don't forget to also diversify with large cap, mid cap, small cap and international stocks.  

Have a good last trading week of October. Still have Halloween on the following Monday. Make sure you don't eat all the candy before the kids get there!



1 comment:

  1. Oct 26th - Nokia unveils first Windows Phone smartphones
    Lumia 800 and Lumia 710 devices are based on Windows Phone