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Final
Segment #1: |
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'Am I
Diversified?' |
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Wednesday,
January 14, 2009 |
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In this segment, Jim
takes 2-3 callers
and asks them to
submit five stocks
that make up their
largest positions in
their portfolio.
He then comments on
whether or not they
are properly
diversified.
Jim:
The market took a
beating today - take
it as a reminder to
stay diversified
Holy Moses, they had
their way today…
banks, retailers,
almost everybody
took it on the chin…
but you know what…
health care held up…
maybe if you had a
little health care
you would feel a
little better right…
well, that is the
power of
diversification. The
power to protect
your portfolio from
the ravages of the
bears. Days like
these are a reminder
to stay diversified.
It does not
necessarily mean
that you will make
money… sometimes we
are just trying to
lose less. Which is
why we play, am I
diversified. This is
where you call me,
you give me your top
5 holdings. And then
you ask plaintively,
am I diversified.
The first caller had
the following
portfolio of five
stocks, on which Jim
commented,
with his opinion
shown below them...
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Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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ATVI |
9.06 |
Activision Blizzard Inc. (ATVI)
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BAC |
10.20 |
Bank of America (BAC)
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PFE |
17.24 |
Pfizer (PFE)
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GE |
14.11 |
General Electric (GE)
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CHK |
15.41 |
Chesapeake Energy Corp. (CHK)
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Caller:
I have Activision,
Bank of America,
Pfizer, General
Electric
and Chesapeake Oil.
Jim:
Okay, now let’s take
a look here.. this
is a little tricky…
first of all this is
a natural gas
company, natural gas
you know is going
lower… I think all
the stocks are going
lower… I think that
has 10 to 15%
downside… if natural
gas breaks to $3 it
has a 20% downside…
but it is a natural
gas. Activision
gaming stock, I
think that stocked
peaked a long time
ago. But it is okay
to have a gaming
stock. I don’t think
you are going to get
anything going
there. Pfizer is
actually a safe
yielding drug stock,
it is very boring…
it just sold… they
just fired a lot of
researchers, that is
not what I like to
see, but still it
has got a good
yield. Now, here is
the problem, Bank of
America is a banking
stock and GE is
regarded as a
financial, maybe you
do not think it is…
but people regard
it. So that is two
for one here. Bank
of America, Wall
Street Journal
reports, that they
need a lot more TARP
money, that is a
disaster for the
stock. Just a
disaster. General
Electric stock,
absolutely horrible,
I do not know why.
It seems to go down
all the time. But we
got a game stock, we
got an energy
company… I mean I
work for GE, it is a
parent company, I
can never own stock,
but I got to call
them like I see
them. It takes a
blind man not to see
this. A gaming
stock, natural gas
stock, drug stock,
and two financials,
according to the
stock market, not
me… and that means…
you gotta make some
changes.
Verdict:
NOT diversified.
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Continued below...
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Friday,
January , 2009
(Cont'd from
above)...
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The next caller had
the following
portfolio of
five stocks, on
which Jim
commented,
with his opinion
shown below them...
|
Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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HPQ* |
35.39 |
Hewlett-Packard (HPQ*)
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WMT* |
51.56 |
Wal-Mart (WMT*)
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FWLT* |
22.78 |
Foster Wheeler (FWLT*)
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NAT |
32.52 |
Nordic American Tanker (NAT)
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LINE |
15.90 |
Linn Energy, LLC (LINE)
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Caller:
HPQ that is Hewlett
Packard, WMT that is
Wal-Mart, Foster
Weaver - FWLT, and
my favorite Nordic
American Tanker
(NAT), and Linn
Energy (LINE).
Jim:
Okay, let us see
what we got here.
Uh, we have the
premier technology
stock, Hewlett
Packard, I own it
for
ActionAlertsPlus,
I pulled the
trigger, I bought a
little bit more
today. That is my
charitable trust… I
play for charity.
Wal-Mart, I own that
one, I bought some
of that the other
day for my
charitable trust. I
think that stock is
dirt cheap. Everyone
hates that stock
retailer now. I
think that is a big
mistake. Lee Scott
will be missed, he
is a fabulous CEO.
Foster Weaver I have
owned that for a
long time for my
trust. It has been
all over, it traded
at $80, traded at
$20, bought some at
$17. I think it can
go higher, but not
if natural gas and
oil keep going down.
North American
Tankers just did a
huge offering, which
they hadn’t. But
they had to pay for
the tanker that they
just bought. And
they were not about
to issue debt. Linn
Energy it is a very
indebted, high
yielding natural gas
play. So let’s see
what we got.. we got
a natural gas play,
we got a shipper, we
got a tech, we got a
retailer, and we got
an engineering and
construction
company. I say that
is perfect
diversification,
well played by our
friend Thomas.
Verdict:
YES,
diversified.
▼ ▼
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The next caller had
the following
portfolio of
five stocks, on
which Jim
commented,
with his opinion
shown below them...
|
Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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AFAM |
38.91 |
Almost Family Inc. (AFAM)
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ARG |
38.68 |
Airgas Inc. (ARG)
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CHD |
52.03 |
Church & Dwight Co. Inc.
(CHD)
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PPG |
40.27 |
PPG Industries Inc. (PPG)
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SNA |
35.28 |
Snap-on
Inc. (SNA)
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Caller:
My five stocks are
Almost Family, Air
Gas, Church & White,
PPG Industries, and
Snap-on.
Jim, am I
diversified?
Jim:
This is very
interesting.
Harriett has a very
interesting
portfolio. I gotta
tell you I am kind
of drawn to it, it
has a nice recession
resistant feel to
it. Okay, lets go.
Almost Family,
nursing company. Air
Gas, which we have
had them on many,
many times. It is
industrial gases…
but it is not
nearly, by the way,
not nearly as
levered to economic
growth as supposed
to pacific pockets
of growth that are
remaining in tact.
PPG is my favorite
high yielder in the
chemical companies,
remember I told you
that I don’t trust
DuPont (DD)
or
Dow Chemical Co. (DOW)’s
yield, no offense to
Mr. Liberace who
runs Dow, but I
don’t think he can
maintain that
dividend, if they go
play
Rohm & Haas (ROH).
I think they should
walk away
Rohm & Haas (ROH),
I know that is not
honorable. Church &
Dwight, well we are
all familiar with
Church & Dwight,
that is Arm N’
Hammer, that is a
fabulous business.
So, we have got a
nursing company,
Snap-On tools, a
tool company, we
have a chemical
company, we have got
wait a second… two
chemical companies…
I spoke too soon… we
need to make a sell,
we need to sell
AirGas. And then
Harriett will be
completely
diversificated.
Verdict:
NOT diversified.
[verbatim recap]
[end of segment]
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