Sunday, January 31, 2016

Saturday, January 30th 2016

The "it's going to get worse before it gets worse." edition. 

As you already know one of my favorite money talk shows is Marketplace from American Public Media. Last week's wrap had a scary conversation about how things are going to get bad in the next few months. The conversation gave me pause about the timing of this (mis)adventure. Foolish as it seems, I am going to forge ahead with the best choices I can make with the knowledge I have, and take comfort in the knowledge that I have a reasonable amount of time before I retire so I still have time on my side.

On the sunny side, this is the first week that officially gets a Ka-Ching rating, a new tag that denotes that stocks in my Buy list actually made enough gains to put me into the "black" or took me higher up than last week. Both Alphabet Inc. (GOOG) and Fresh Del Monte (FDP) ended the week with gains. GOOG made great progress ending the week at $742.95, putting one of my batches well in the black and the other pretty close. On average though, I am 1% over. FDP ended the week at $40.81 giving me a current gain of 3.2%. This put a smile on my face in spite of the potential storm that is approaching.

This week I saw another manifestation of what I have referred to as the "Ownership Bias". At the grocery store while buying lunch time fruit in syrup things, I ended up buying the Del Monte brand over the Dole brand, just because I own FDP stock.

In the Potentials list I have a new stock this week:
Name                               Novo Nordisk ADR
Industry:                            Drug
Symbol:                              NVO
Timeliness:                        1
Safety:                               2
Technical:                          3
Approximate Price:            $55
Dividend Yield:                  1.6%
Industry Rank:                    27
Low Gain Estimate:            20%
High Gain Estimate:           55%

Novo Nordisk (NVO) is a Dutch company that makes medications primarily for diabetes management, hemophilia, and other conditions. They have a had a strong 2015 and are poised to continue a good run this year too. Two new diabetes drugs have just received FDA approval and more drugs are well into the research and approval pipeline. They have a small (1.6%) dividend and a good price appreciation potential too. This is also the only stock given a Timeliness of 1 by Valueline in the Drug industry group. I foresee a good chance that I will convert this to a Buy in the next week.

Still on the bubble is Cal-Maine (CALM) which I should have bought when I first saw it. If I had I would have put away a gain of 5%-7% and also claimed the dividend that just passed the ex-dividend date. Maybe this will be the week I jump into this omlette too.

That's all I have this week. If you have been a regular reader, please leave a comment and tell me WhatSayYou?

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