Sunday, August 23, 2015

I don't think we are quite at a bottom yet, but there are some names that you can start to accumulate here for a long term investment. AXP, GILD,DIS,TWX, and AAPL

Dow Jones Industrial Average 15,459.75 (Way Down) Week ending 08-21-2015

(The Dow Jones averages have now corrected 10.9% off of its high for the year.)

 So after an ugly month of trading in August most accounts are back where the started back in January this year. Flat as a pancake, but oh what a fun ride. 

I don't think the market correction is quite over yet, but here are some names you can buy for the long term as we settle in and put in a bottom. These are all Large Cap names and should be familiar to you. Since it is September just about, we will look at 2016 forcasted earnings.

The first one is American Express Corp. (Symbol AXP, $77.15). This stock is trading at a PE of 13.54 and is forecasting earnings per share of $5.68. You will not go broke buying some of this.

2nd Pick would be Gilead Sciences Inc. (Symbol GILD, $105.33).  This stock has a PE of 10 and is projecting 2016 earnings per share of $11.55.  

 The third stock would be Walt Disney Corporation (Symbol DIS, $98.84). This one the bean counters have thought the "sky is falling" because of cable bundling coming undone. Evidently they do not understand the power of the "Force" and that Star Wars is coming one after another for the next 5 Years. Consider Disney 10 times more powerful than the Death Star in Star Wars. You can invest as much as you like in this name. Fire at will!  Disney has a current PE of 20.55 and is forecasting 2016 earnings of $5.59 per share.

Speaking of Death Stars, here is a little company that has $194 Billion dollars of cash on it's balance sheet, Apple Inc. (Symbol AAPL, $105.76). Apple currently has a PE of 12.21 and is forecasting 2016 earnings of $9.73 per share. The stock frankly should be trading at $160 - $180 dollars per share. This one is a layup at this price, a no brainer.

 The fifth stock is Time Warner Inc. (Symbol TWX, $72.70). This company has the least exposure to the fickle AD revenue business. They are about Content. HBO, Warner Bros., and Turner make up a powerful and expanding lineup. Time Warner Inc. currently has a PE of 17.1 and has 2016 projected earnings of $5.72 per share. This stock is rock solid and can be purchased here at this price.

As always be careful when buying stocks. Smaller is better because you can always buy more later.

Have a great weekend,


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