Disney is just one of those companies that can do no wrong (yet). Seems like every single move they make turns out to be golden. Look at that purchase of Marvel for example. Snagged them right when superhero movies were beginning to become very big box office business. Crazy success since then. Amusement parks continue to just rake in the money even after raising ticket prices aggressively each year. I think once they finish the China park that will be huge boost for them. Also the ABC network including ESPN continues to be a juggernaut. Especially ESPN, gotta be one of the most successful and most watched channels around.
Good luck to you frigator, not that you need it, you seem to be making more than your fair share of good stock purchases lately. :-)
Disney (DIS) is one that could definitely apply here. Still seeing amazing revenue growth as a mature large cap company. Almost recession proof in a way. I bought some a few months back when it swooned a bit and think this could hit $100 should the markets keep behaving.
Another one I own and am bullish on is Marathon Petroleum Co. (MPC). It got hammered a while back, and I picked some up along with Valero. It has recovered quite a bit and a few analysts have raised their rating to buy recently. Stock has a lot of momentum and just today crossed the $90 mark. Could get to $100 with another positive earnings report and future guidance. A lot depends on factors out of their control though like WTI/Brent spread, etc.
Pepsi Co (PEP) and Clorox (CX) are two more that (could) fit the bill. I think they're both overpriced though so I would pass on them.
Raytheon (RTN) is a stock that has previously hit the $100 level only to drop back down. Since it seems clear that the USA will never back off from being the main war instigator, RTN could surge back up and over $100 easily. Trading at $95 right now.
If I could give you ten thumbs up for this post keltus, I would. Your point rings true, I don't think most people understand how much they are overpaying for lackluster future growth estimates. I think the JNJ's of the world keep getting a pass based on their prior respect earned on being a core stock that everyone must own. Not to mention people see the dividend yield and think well that's way better than being in cash or a money market fund.
McDonald's is another stock that is still cashing in on prior respect. Current growth sucks, the future growth estimates are very tame, yet look at the multiple it still gets in today's market. I find it crazy and fascinating.
I don't know, I can't remember the last time markets were down when the Fed chair was scheduled to speak. Seems like every time markets are up and gold/silver get slammed down.
Also, I've read several times over now that overall market volume of shares traded has been very down compared to past years. Some of this is due to the record amount of shares taken off the market through companies buy backs.
This is especially true with the lower daily float stocks like SLRC, GARS, and MRCC. Who know when somebody will accidentally put in a large market order and spike one of these down short term. I still have my limit order in on MRCC to buy at $12.93 all this time but no luck (yet). Thinking about putting one on for GARS also.
Like you, I remain skeptical of how strong the US economy really is and how everything is roses. I also have learned that it is not smart to fight the Fed or fight the prevailing trend in the markets. Right now the trend is up, up, and away. Been that way since 2009 with a few hiccups. I could load up on the short ETFs, but the market can remain irrational far longer than I can remain solvent should my timing be off. I keep a reasonably sized position in RWM, because when the correction happens at some point, it is small caps that always take the best drubbing. But still, who knows how far off that will be.
I do not own any pure index funds all this year, and that move has hurt me since it is the crappiest stocks with the most short selling that are making the biggest gains once the shorts cry uncle. My plan is to rotate money back into them once the bear market takes hold and the correction happens. Again, this could be a long wait!
I know I promised to not make fun of the mentally challenged and/or insane anymore, but this made me laugh. Apologies to bababara00 (who I have on ingore), I do hope you can find proper help though.
Some of you might be interested in reading an article over at CNBC titled 'Fishy Financial Disclosure at Darden's Red Lobster'. I would post the url, but I'm sure yahoo would remove it or my entire post. Apparently, Darden was doing a little talking out of both sides of their mouth when it came to disclosing their true view of Red Lobster's future as a franchise. While publicly saying again and again that selling it was best for Darden shareholders and Red Lobster was facing an uncertain future, they secretly felt that the chance of a turnaround was high.
In any case, potential good news for Golden Gate Capital and ARCP on this transaction.
keltus1952, I think the main thing driving the markets right now is M&A activity. This usually is a good signifier of approaching a market top. Valuations can be driven every higher as companies compete for buy outs. Look at Family Dollar for example. They are being bid for well over normal valuation IMO, but given unique market circumstance the deal still makes sense (I guess). Sounds like they are being bought out at whatever cost it takes to remove them as competition. Jobs will be lost, overall economy will likely not benefit from this deal, but short term it is driving the index up higher.
That song, 'Do you believe in miracles' keeps playing in my head for some reason. :-)
GILD has been on a tear, starting right around the time I complained a bit about why it was not trading higher post earnings. But after the patent lawsuit got decided in Gilead's favor (which was expected), and after Britain's national health service announced it had accepted solvaldi treatment for $700 a pill, everything is gravy for GILD right now.
Investors are in a tough place right now, because how can one not allocate a significant portion of their wealth to stocks in search of yield given the inflation that has taken over food costs and other everyday purchases. Not to mention healthcare costs. Health plans will be going up at least another 5-7% here in California next year.
I think Yellen did in fact make that proclamation from Jackson Hole wisejman, ha ha ha. USA is so clearly on the same path as Japan. Interest rates just slowly grinding down closer and closer to zero as the country piles on so much debt it will be impossible to pay off without seriously devaluing the currency. It's amazing that Japan 10y notes yield like 0.5% these days, even with a total debt load that is 350% of their current GDP.
I'd be a bit cautious on HLSS. The entire Erbey empire is under some harsh spotlights these days from regulators and wannabe politicians trying to make a name for themselves. Plenty of accusations of illegal affiliate transactions between all the Erbey companies, fraud against consumers, etc. If it all gets cleared up in the end, OCN might be a tremendous buy, along with HLSS. Right now though there is uncertainty.
I think the reason is two fold:
1. International buying. Global investors are looking for safety but also for the highest yield for that perceived safety. Look at the EU and where debt is trading there. Germany? Way less than US treasury rates. France, Italy, Spain? More or less the same, and US is perceived as safer at this point. Considering the US seems to be the cleanest shirt in the bunch, investors are flocking to its sovereign bonds.
2. From what I've read, thanks to the endless QE by the Fed, there is actually a severe shortage of treasuries in the market. A lot of banks and investing firms need to hold enough 'top tier' debt collateral that they can use to make much more aggressive investments from. The Fed has been holding a reverse repo at the end of every month to try to address these shortages, but it is kind of laughable. Reverse repos have by far been hitting all time highs lately, as banks are desperate to take advantage of this program to window dress their holding and make it seem like they hold all this top tier collateral when in fact they don't