Sunday, June 28, 2015

"This is no time to be buying stocks. Greeks are not going to budge and the Chinese are leveraging up a bit. I am having trouble finding good stock values within my investment criteria"

Dow Jones Industrial Average 18,027.63 (UP) Week ending 06/19/2015
Dow Jones Industrial Average 17.949.12 (Down) Week ending 06/26/2015

Time to do a little profit taking on your stocks. I even lightened up a bit on my Apple (AAPL) stock position this week because they need to run a sales gain over last years $212 Billion in Revenues, a tough task.You need to access the risk in your portfolio and take some corrective action. (DO NOT sell everything!)

The market is looking for a reason to correct and sell-off here. Greece, no matter which way it goes, will cool off any gains in Europe. The Fed is sure to raise a 1/4 percent on interest rates and throw some cold water on the US stock market expansion. The Chinese are having to ease up on capital requirements, (i.e.leveraging) to keep their economy going at a high clip. It is simply time for a rest stop here. 

There are some stocks I like that fit my PEG Ratio under 1.5 and Return on Equity of 15% plus after we have a 8 -10% correction. These stocks are good building blocks for a solid portfolio.

PPG Corp. (PPG), Gilead Sciences(GILD),Middleby Corp. (MIDD) and Disney (DIS) would be some of the names to look at.

I would like Merck here , (MRK), if the stock had not flat-lined for the last five years in price. They have made efficiency cuts but have dropped in revenues for the last four years. They need an activist investor in here to stir things up a bit. They have a nice dividend if you want to buy it and wait for something to happen.

My worse blog call of the year: Keurig Green Mountain Coffee. (GMCR). These guys have come down from a high of $155.00 per share to now $77.96 and falling in six months. This is where you try to "catch a falling knife" and it takes your hand off. Avoid even at this price!
I thought the interest from Coca Cola would hold this one up a little better.

So get to your Greek ATM and get your money out and batten down the hatches. This could be a rough ride for awhile here. 

If your bored and just need something to buy, 

Ironwood Pharmaceuticals Inc. Cl A ,(Symbol IRWD ), is not a bad speculative buy here at $12.03 per share. The conversion price on their $300 Million Senior debt offering is $16.58 per share, so you have a lot of headroom here for a gain. Linzess is their product and they should have positive earnings in 2016. You may want to let this Greek thing play out first and get even a better buying position.

"Remember. The train does not always stay of the track!"

Enjoy your summer and keep your money in your pocket for now.


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