I've been having dreams about my portfolio recently, getting 1-2% gains nightly. In last night's dream it was up 7% in just one day! But alas, the exact opposite has happened (I'm obviously no psychic!).
As a matter of fact, it's pretty darn ugly out there at the moment (like my ex-gf with no make-up, eek!). I've been only watching the news feeds and playing CAPS the past couple of weeks, basically distracting myself to help me ignore the daily horror!
Seriously, my portfolio has fallen quite significantly with the latest dip. We're even past the lows hit earlier this March (Victor was right, I hate him). What to do, what to do!?!?! My conscious is telling me to sell everything and lock in the measly 2% gain that I'm still up. So I do the exact opposite. I'm updating my watchlists (mainly with long-term value plays) and will prolly trigger thirds in existing positions.
A couple of suggestions to watch, Nvidia (NASDAQ: NVDA) was hammered hard today on poor Q2 earnings outlook. They also screwed up their packaging and some pre-gen cards were damaged during shipments. Not very good press out there on them at the moment, but these are the exact opportunities I look for when determining an optimal entry point. Nvidia has surpassed ATI as the dominant player in the video graphics market, and I see a Intel vs AMD relationship between the two top companies. I'm doing some number crunching this weekend to see if this 30% drop this weekend was justified.
Another watchlist add would be Coach (NYSE: COH). Retail has been hit hard and although COH is increasing market share in Asia, their stock has been bent over and taken it hard. Again, a little more research won't hurt before triggering, but I might be initiating my last third in COH very soon.
Finally, I really like how Lloyd's TSB Group plc (NYSE: LYG) is looking from a valuation perspective. Although an international play and not tied to subprime mortgages, it's been punished all the same since it belongs to the same sector as Bank of America, Citigroup, etc. They've yet to cut their dividend so I think we'll be seeing some nice margins even if the price remains stagnant. Besides a dividend cut, global-wide economic downturn is also a concern therefore I'm keeping this play on the bench for now. I'd like to see how Great Britain is affected by the U.S. recession before taking a swing here (If you ever noticed, CAPS is like my Triple A baseball and my portfolio is the MLB).
Well, that's enough homework to do for the long Independence Day weekend, enjoy the fireworks everyone!
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