Stocks in my radar
“The way to make money is to buy when blood is running in the streets.”
John D. Rockefeller “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
Warren Buffett
Below I am giving a few stocks that I am considering to buy. I am doing research on these stocks and will post in details about them as my research comes along. All the stocks that I am considering are for the long term and not for momentum investing. So here go the stocks,
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UNH (United Health)
Current Price: 33.87
I think this stock is undervalued right now. Its at a 52-week low and has shown good EPS growth. I think it might be a good stock for value investing. I apologize in advance for the lack of details but a detailed post on UNH is coming really soon. So hold on to your seats till then.
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NOK (Nokia)
Current Price: 26.78
Great company. It owns Navteq. Going big on mobile phones with GPS. Kind of hedging against Garmin if gps on cell phones is the future. Pays a dividend of 3%. Its at a 52-week low. Low institutional ownership. Zero debt. I think the price will go lower making this stock very attractive at around 22 dollars. At 22 dollars I know I will buy atleast some. Great EPS growth. Good profit margin. A lot of good things happening for this stock except for the negative price momentum. I think there are concerns around the competition with Apple and RIMM but Nokia phones are extremely popular in India. Excellent Return on Investment and Return on equity. Terrific fundamentals overall.
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PFE (Pfizer)
Current Price: 18.67
Stock has been down for 8 years straight. I am looking into the stock mainly for dividends. The dividend yield is 6.86% and they have consistently increased their dividends. Fundamentals dont look particularly great but I feel the stock is a bit undervalued. Will have to research more before investing. Cant get lured just because of dividends.
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USB (US Bank Corp)
Current Price: 33.52
One more stock which I am considering for dividends. It gives a yield of 5%. Great Net profit margin of 29.8%. Nice Return on equity. EPS TTM is -ve which is a little concerning. Warren Buffet owns the stock. I think this stock would be a good buy if the price falls to around 30 dollars. I am strongly considering this stock to start generating some dividend income. This stock is one of the few financial stocks that have performed well in the last 6 months.
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IBN (ICICI Bank)
Current Price: 36.95
One of the best banks in the India. I am happy with their customer service. Stock has fallen to a 52-week low because of mortgage related worries. Good net profit margin. Its concerning that their debt to equity ratio is high. Might consider buying the stock if the price falls further.
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COH (Coach Inc.)
Current Price: 36.86
Might consider buying if the stock falls to around 28. Good net profit margin. Great ROE and ROIC. No debt. Good sales and EPS growth. Overall fundamentally very strong company.
Thanks to Dividends4Life for recommeding these additional dividend producing stocks: AFL, JNJ & GE. I haven’t researched these yet but am planning to do that soon.
Stocks that I was considering before but now dont plan to buy
- BAC (Bank of America) I was initially considering to buy BAC since it pays a decent dividend. But fundamentals look bad. Plus I hate their customer service. I prefer WAMU to BAC for customer service any day.
I am researching these stocks and haven’t bought any yet. I am not a financial advisor, a CFA or a person with an IQ > 180 so please do your own research before buying any stock. If you do find something interesting about the above mentioned stocks share your thoughts by leaving a comment or mailing me at dividendpirate @gmail.com
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June 5th, 2008 at 10:03 pm
Nice one
You ve covered pharma, telecom, banking. Whats your method? Do you look at sectors first and then zero in on the scrips?
Must admit your research IS into fundamentals than the usual ‘tips’ one comes across.
Cheerz
June 5th, 2008 at 10:12 pm
Thanks Kush for your encouraging comment. Below are some of the reasons for the choice of stocks,
- I am very heavily vested in stocks in the technology sector and by heavy I mean close to 90% so I am trying to diversify a bit.
- I want to start generating dividend income since that income is taxed at a lower rate than my current tax bracket.
- I believe in value investing and some of the stocks in the list are the ones that I feel are good companies but undervalued in price.
I use Scottrade which is an online stock trading company. They have a terrific research section which I use to screen stocks based on fundamental and technical factors.
June 7th, 2008 at 4:42 am
Thanks for the mention! nice setup you have here.
Best Wishes,
D4L
June 8th, 2008 at 8:26 am
How do you know NOK will go down further at around 22 ? I bought this stock at 30, but I will hold to it.
Alex
June 10th, 2008 at 9:58 pm
Alex, Nokia is having a negative price momentum presently so it might go down further. In fact it has already gone down since I had written this post.
I am not sure if it will ever go down to 22. But if it does, it will be a great buy. If I were you, I would not be too worried about buying it at 30 since its a great company and in the long term should reward you handsomely. Of course there are no certainties.
June 19th, 2008 at 9:13 am
Nice list. The problem with PFE is that if they don’t develop a blockbuster drug or buy a pipeline through acquisitions, the company would just be a pile of cash after most of its drugs patents’ expire..
June 19th, 2008 at 11:25 am
Frist I thought this site is same as living of dividends. Anyways, good choice, you have covered various sectors. I would add BAC back in line though. Just wait for it to go below 25. If one can wait for 3-5 years, it is a steal.