Sunday, October 21, 2012

"Spooky Friday, but the Dow ends UP for the week. Keep buying quality stocks and stay the course (for now)"

Dow Jones Industrial Average 13343.51  (UP, in spite of an ugly end of week) 10-19-2012

Whew! It's a good thing I didn't blog about Chipolte Mexican Grill or Google in the last few weeks! Some guy at RR Donnelly presses a wrong button and releases an 8K report early on Google and it turns the whole stock market on it's ear!

  People that know I write a stock blog will come up to me this weekend and tell me "hey, what happened to the stock market on Friday down 209 points" . Well it was triple witching options expiration what did you expect to happen? You should have bought some PUT options. The fact is that the stock market ended up for the week!

Also The Dow Jones Industrial Average since the beginning of 2009?:

" The markets were closed on New Year's Day, but the Dec 31, 2008 close was 8776.39 and Jan 2 , 2009 closed at 9034.69." That is UP 34.27%, not bad.

Sometimes you just need to look at the signs to see what stocks to buy.

Kohl's Corp. (Symbol KSS, $52.93) 

Return on Equity 16.30%  PEG ratio 0.88

Kohl's is a relentless advertiser doing TV, US mail, newspaper, Internet web, and  email non-stop.

Kohl's  is projecting 2013 earnings per share of $4.61 per share and 2014 earnings of $5.13 per share. The stock has not done much in the last 3 years being down 8%. It has been kind of storing up energy for the next big push on the stock price.The stock does pay a dividend of 2.42%.

Long term earnings growth on the retail stock is 9.57%.  The forward PE on the stock is 11.48 so priced very reasonably. KSS has an operating margin of 10.60 which is good for a retailer. They turn their inventory over 3.41 times a year which could probably be improved on. They have almost $10.00 per share in cash on the books.

There are 10 strong buy recommendations on the stock right now. This is just a nice, low risk, low volatility, steady performer that should give you a 12 to 15% annual return with the dividend and let you sleep at night. 

This from Kohl's media department,  "Based in Menomonee Falls, Wis., Kohl's (NYSE: KSS) is a family-focused, value-oriented specialty department store offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. With a commitment to environmental leadership, Kohl's operates 1,146 stores in 49 states. In support of the communities it serves, Kohl's has raised more than $208 million for children's initiatives nationwide through its Kohl's Cares(R) cause merchandise program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc." 

So if you want a reasonable place to shop for the holidays that gives you family friendly pricing and fairly good quality, Kohl's Department stores may be the place.



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