What will I chose in market packed with bargains like General Electrics (GE), Google (GOOG), STP Suntech Power, GOL, Mariott (MAR) Boing (BA) and many others? March 26, 2008Posted by deminvest in BA, Boeing, China stock, goog, Google, International Hotel Group, Internet stocks, investment, investment strategies, Nasdaq stock, Wipro, WIT.
Tags: bargains, Wall Street
I must be crazy. I see great bargains in the same Wall Street where big gurus see thunderstorms and danger. I feel just like one of those bargain hunters:
My problem: too much choice of under-priced stocks! Not easy to pick.
- I could get some more GE: P/E 16, forward P/E 13. Juicy dividend yield of 3.70%. revenue and earnings growing
- I could get some more Google: Forward P/E 17. Yea they say their revenue and earnings growth may slow down. So what? Google is more successful than ever. Google’s growth in advertising revenue in 2007 in USA was larger than revenue growth of all other advertising seller summed together. Also Google has cash corresponding 10% of its market cap. Even if Google has a few quieter quarters, its fundamentals are as great as ever.
- I could get some more STP Suntech Power: it is Worlds largest Solar panels producer. Everybody wants clean energy nowadays. That is why STP during last quarter had Revenue Growth: 82.50% earnings Growth (yoy):61.10%. I could get this stock as cheap as Forward P/E: 12
- I could get some more GOL: the Brazilian airline is growing its revenue 47% a year, has forward P/E : 8.18 and gives out juicy 3.30% dividends
- I could buy BA, Boeing: trailing P/E 14, forward P/E 10. Boeing has all its production sold for next 5 years, so it should be recession proof. Also Nice is the fact that such a company gives a 2.1% dividend, increasing from last year and has zero debts, surprising for a company that had to build huge factories and hangars and had to invest in research, design and engineering.
- I could get Wirpo (WIT), the IBM of India Forward P/E 16, Revenue Growth (yoy) 30%, Earnings growth 11%
- I also like very much Mariott Hotels (MAR) and International Hotel Group (IHG)
But I had to chose one for March. I decided to buy Boeing today: it looks like the safest bet mainly because their production of next 5 years is already sold. It is good to be safe when you’re bargaining!
A few hours ago I bought 14 Boeing (BA) shares at $75.81 each spending a total amount of $1061.34.
Let the force be with Boeing Airplanes!