Just checked on my predictions from 10/18. All three shot up, with gains of 1, 4, and 10 percent, in about a week. All have since pulled back. I put some money into Sprint at about 17.25 and rode it up to 19 after earnings were released. That move filled the previous gap, so I took my profits.
I think I got a little full of myself the other night. I remember vividly being gung ho about BUD when it was bouncing off of $40 a while back. I had no money to play with but told anyone who would listen it was a great buy. Later we found out Buffett and Cramer had agreed. More recently, with the retail sector in a funk do to the real estate panic, I bought some Target below $47 because it's a much more pleasant shopping experience than Wal-Mart and there is no threat on the horizon. My father in law was impressed when TGT shot up near $60 within about 2 weeks. He informed me the other night that again, Buffett had agreed. I theoretically beat Buffett to the punch twice within a year. If nothing else, it makes me feel as though I'm on the right track!
Anyway, I think the only sale I've mad, beside the Sprint trade, was getting out of Encana with a small profit. I made a bad entry but got out by the skin of my teeth after I noticed the RSI hitting downward resistance. It's down a couple of dollars since. I bought more FHN at $38. I bought Briggs & Stratton at $25.50 because according to my eyes a bottom has been confirmed. Made in the U.S.A. Most every small engine I've seen is either a Briggs & Stratton or a Honda. Not bad company. And did you know they pay a 3.4% dividend? The situation reminds me of the Whirlpool/Maytag scenario a while back. We'll see if I hold onto it that long, I also decided to buy Morningstar today at $41... right before it dove below $40. Real smooth. Their price ratios aren't stellar, but it's 75% insider owned and a terrific brand. How can you calculate the value of business generated from having a five-star rating? How loyal is any mutual fund investor to their ratings? On a lesser scale, I picked up some DELL for technical reasons. I'm also watching Semtech (SMTC) for similar reasons.
Before I forget, I also called the Wal-Mart - prescriptions story. Again, I can't verify this, but I did ask someone a few months back how long it would take Wal-Mart to enter the generic drug market. I was initially wrong in that I suspected they might acquire a manufacturer. I hesitated due to the fact that Wal-Mart has no interest in manufacturing anything, just using their supply chain management and buying power to win at business. CVS overreacted today... until we find out who Wal-Mart has in their pocket!
Until next time.
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