THIS IS NOT INVESTMENT OR TAX ADVICE. THIS IS A PERSONAL REFLECTION ON INVESTING. RELY ON NOTHING STATED HEREIN.
Don't you just love earnings season and visits from China? Talk about yay-boo!
Citigroup disappoints, and drops from over $5 to a support line at 4.75. I double down once it slips below 4.90. I am still a believer that it makes $6.00 by year end and is paying a decent dividend in 2012. Bank of America's report on Friday showed continued if slow progress. I bought more of its preferred which continues to pay over 7% with a qualified dividend, well below its call/par price. Associated Bank is showing progress in extricating itself from a mortgage mess, so I bid on some of its 7.6% exchange traded debt for below par. It stayed above par/call price all day ($25) so I will try next week.
Jitters about Chinese inflation and its need to slow its economy sends shivers through the commodity markets---especially oil. This provides me an opportunity to buy CononcoPhillips (COP) on a dip. Speaking of oil, attached find an article in Friday's Financial Times----THE BEST FINANCIAL NEWS SOURCE IN THE WORLD. If reading this does not embolden you to BUY BUY BUY oil and oil exploration stocks, nothing will. As to the FT, I am serious. I have subscribed to the WSJ continuously since receiving a discount in law school in 1974. It is parochial, is a bearer of only bad tidings and contains no real insight for the individual investor. The FT provides a financial Weltanshauung.
On Monday, Apple shocks with the Jobs news, and then reports a blockbuster quarter. Cramer has set $400 as the target which I believe is attainable (since it has over $60 per share in cash alone). As AAPL fell to $326 at the end of the day, I bought more.
Speaking of Cramer, one of his favorites, F5Networks, a mainstay of the smart phone tsunami, barely meets expectations and drops 20% in one day. This causes a drag on the entire smart phone component universe and provides me an opportunity to buy another Cramer favorite, Skyworks Solutions, a smart chip producer, on a dip. Unlike F5, Skyworks exceeded expectations and looks like a winner for the next few years. This is my most speculative play, but I need more tech exposure. AAPL alone is not enough.
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