I've been holed up with a knee injury this past week, and decided to spend most of my time analyzing the 30 stocks that comprise the DJIA. You PFE longs may be happy to know that I've ranked UTX #2. This is based on both fundamentals and technicals (leaning more toward the fundamentals) and the time horizon is short term - out to 6 months. Here's how I ranked them: (1) UTX, (2) PFE, (3) WMT, (4) JNJ, (5)MCD, (6) GE, (7) INTC, (8) MSFT, (9) MMM, (10) MRK, (11) DD, (12) DIS, (13) HPQ, (14) IBM, (15) HD, (16) KO, (17) PG, (18) VZ, (19) AXP, (20) JPM, (21) C, (22) BAC, (23) T, (24) GM, (25) CAT, (26) BA, (27) CVX, (28) AIG, (29) XOM, (30) AA
Israel is going to worry about Israel first and the rest of the world second. And that is the way it should be. No way should Israel be asked to be made sacrificial lambs and at the tender mercies of the mullahs.
If it comes to pass that the Straits are mined, so be it but don't ask Israel to refrain from protecting itself to the utmost against an enemy sworn to wipe it from the map.
Israel was willing in 1991 to "take one for the team" when Saddam lobbed Scud missiles into Tel Aviv and the U.S. asked Israel not to retaliate so that the Arab part of the coalition could hold together.
But no way is Israel taking anything from the Iranians for anybody - including the U.S.
Any military action on the part of the U.S. is probably at least a year away. Israel might be an entirely different story, however.
They have bought enough bunker-busters to be able to get quite a bit of the job done by themselves. And the Jordanians had better look the other way when Israeli warplanes overfly a corner of their territory if they know what's good for them.
Military options against Iran:
Next month diplomacy will fail, then we'll see what effect that has on markets.
Well, it's been almost a year since DPMOIL issued his ranking of best stocks within the DJIA, so let's see how he did.
It turns out that there is only one stock that had a positive return since the ranking was developed in mid August '08. And that's JPM, with a barely positive 1.44%. Biggest loser was, of course, GM which lost 100% of its value. Here are the results for all 30 in order: JPM (1.44%), MMM (-4.05%), HPQ (-5.04%), HD (-5.67%), IBM (-6.7%), VZ(-8.37%), XOM (-8.7%), KO (-9.55%), MCD (-13.43%), JNJ (-14.6%), MSFT (-15.4%), WMT (-15.89%), MRK (-17.1%), T (-17.26%), CVX (-17.49%), UTX (-18.46%), PFE (-20.35%), INTC (-20.78%), PG (-22.47%), IDS(-22.71%), AXP (-27.36%), DD (-32.32%), BA (-33.47%), CAT-37.33%), BAC (-51.82%), GE (-55.03%), AA (-63.02%), C (-82.96%), AIG (-97.14%), GM (-100%).
This time last year few could have imagined that LEH would be allowed to go under and that the Treasury and Congress would prove to be so utterly inept in finding solutions to the credit-crunch.
Did anyone a year ago really think that a bellwether like GE could really trade at $5.75 a share? To give some perspective here, the lowest that stock got in the big 2000-2002 market collapse was $21.30.
For this purposes of this board, I had PFE ranked second in my predictions last August. At the current time (almost a year later), it is the middle of the pack. I'll have to polish that crystal ball. DPMOIL