MartyWith the stock market conditions as bad as they’ve been in a number of years and an impending recession on the horizon, these are times to tighten your budgetary belt. It is also a time to start thinking about investing in the stock of good and solid companies at deeply depressed prices. It is those times when everyone is running for the exits that the smart investor goes against the grain and goes shopping for stocks. So many great companies have just been slaughtered recently, it’s hard to pick just five. With that said, here are five stocks that are on my buy list:
Apple Computer (AAPL) is a leading technology company that is famous for designing and selling innovative consumer electronics. Not just a computer company anymore, Apple is the maker of the iPod, the world’s most popular portable media player, the iPhone smart-phone and of course the Macintosh personal computer. Currently Apple is off it’s high of $202 per share and closed today at $110. While Apple does not pay a dividend, it is well positioned to continue leading the way in the areas of mobile computing and digital media; two major technolgy growth areas.
Coca Cola (KO) is a leading soft drink beverage maker and has a global presence in more than 200 countries. The company is involved with over 450 brands of soft drinks, juices, teas, coffees and other specialty drinks. Currently Coca Cola is off a 52 week high of $65 and closed today at $47. It’s also currently paying a 3.2 percent annual dividend. This is a blue chip consumer company with shares drastically marked down and paying a nice dividend to boot.
Home Depot (HD) is a leading home improvement retailer with over 2,200 stores in the United States as well as stores in Canada, Mexico and China. With the depressed real estate market, shares in Home Depot have certainly taken a beating over the past 18 months. Off it’s 52 week high of $34, it closed today at just over $21. Like Coca Cola, Home Depot is a blue chip company paying a 4 per cent annual dividend.
Google (GOOG) is the leading online search company as well as advertiser. It has well over an 80 per cent share of the online search market in the United States and earns most of its revenue from search related targeted advertising. It recently completed an acquisition of online advertising giant DoubleClick which has only helped to bolster it’s dominance in the online advertising space. Not for the risk adverse, Google is trading around $380 per share, well off its high of $747. While depressed market conditions persist, a good strategy would be to “dollar cost average” in to build a position which means to buys shares over an extended period of time to even out any extreme swings in share price.
Frontline Ltd (FRO) is a leading oil tanker shipping company and operates a fleet of 76 vessels. The sudden and dramatic slide in crude oil prices has definitely depressed the share price of Frontline stock. Off it’s 52 week high of $72 occurring just this past June, it is currently trading in the mid $30’s. The big pluses that make this stock a screaming buy: a P/E ratio of 3.61 and a quarterly dividend of $3 per share. That is a 32 percent annual yield at today’s share price.
What are some stocks or other investments you are considering? Are you concerned about the future of the market or are you optimistic and looking for opportunities? I invite your comments.
| 3.5 (2 people) |
I’ll buy Coke 
that a good stock!
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3.1 |
Can’t go wrong with Google, there’s no competition in the search engine market. Plus, Google’s aquisitions are always quickly integrated into the company and put into place to make money (i.e. Feedburner).
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2.5 |
i am not too much in stocks, but you should take a good look at VW ( german car producer Volkswagen ) some people made a lot money with that one
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3.5 |
I though GOOG was a bad choice. They really have a habit of shelving those acquisitions and aren’t likely to buy up any more in the near future.
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3.5 |
It is definitely a good idea to buy stock in (very) trusted companies now that prices are significantly lower than they were even just a few months ago. Another smart move to make business-wise is to know that during a financial and economical crisis, home based businesses thrive because people realize that they cannot (and should not) rely on corporations and financial institutions to bail them out, for lack of a better term. It is important to have several streams of income coming in so if you do get laid off from your job or lose money when your bank closes, you have a back up plan that is stable enough to get you through it.
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2.5 |
I am just buying Spiders and Diamonds, long term the market will go up.
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3.2 |
There are definitely bargains out there. I’m looking for high dividend stocks myself. I like getting that little extra and reinvesting it over the long term -
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3.5 |
I think it’d be a good investment. But if I have lots of money now, I’d buy gold bars.
MY
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2.5 |
KO has been one of my favorites for a long time. It’s probably the best known brand on the planet. Also, my mentor, Warren Buffett loves it.
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3.1 |
Sorry, the only one I can agree with you here is Coca-Cola. It falls into the “Affordable Luxury” category for me. Apple? Overpriced products will not do well in the coming years. Google? Its a push for me, they’ll be fine, but the growth days are on hold. Home Depot? Not coming back, going away. Their policy of 5 credit card accounts per person has kept them in business, its over. Frontline? Its a push too. Though they have a better chance of being aquired than growing. Just my thoughts.
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2.5 |
I <3 your blog and would like to award you. See my blog! BTW, thanks for being my top dropper for Oct.
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3.2 |
I worry about Apple being able to maintain their high prices in a down economy. I do like Coca-Cola.
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3.2 |
What about UPS? Low Gas Prices this stock is guaranteed to rise. You heard is here 1st.
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3.5 |
I think in this situation, we should not buy stock on IT company. You should chose another one.
PS: Thank you for dropping card
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2.1 |
to frontline: dont get mistaken, that div.yield wont stay there, as their earnings slip too, not only share price…though it might be a buy.
Coca-Cola is a different story, I like that, their earning are maybe the most stable in the bunch, and will suffer the least being a trully global brand.
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2.5 |
Great tips. If your looking into financials or banks go with US Bank and Wells Fargo. BAC bit off more than they could chew, but if they hold their own they will be big, but its a rough ride for awhile.
Best thoughts,
Matt
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3.1 |
