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Final
Segment #1: |
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'Am I
Diversified?'
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Wednesday,
February 18, 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:
We will get through
this market together
- in the meantime,
stay diversified!...
If you are playing
with an
undiversified
portfolio… what can
I tell you… it is
like bringing a
knife to a gun
fight… this is a
treacherous market…
you need every
available weapon at
your disposable… my
weapon of choice..
diversification…
which is why we play
Am I Diversified?...
...to clear up any
misapprehensions you
may have about what
you are packing.
|
Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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BMY* |
20.92 |
Bristol-Myers Squibb Co.
(BMY*)
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DIS |
17.63 |
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PG* |
50.95 |
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RPM |
12.46 |
RPM International Inc. (RPM)
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WIN |
7.63 |
Windstream Corporation (WIN)
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Caller:
Bristol-Myers Squibb Co.
(BMY*),
Walt Disney Co. (DIS),
Procter & Gamble (PG*),
RPM International Inc. (RPM),
and
Windstream Corporation (WIN)?
Jim:
Okay, here we go…
Bristol-Myers one of
the top
pharmaceutical
companies in the
world, good yield
6%, back to 20, I
own it for
ActionAlertsPlus.com,
drug…. RPM,
diversified
manufacturer of
coatings, a lot of
other things, kind
of a little
household spin to
it, we know
unfortunately from
everything household
including Fortune
Brands and Masco,
that that is a tough
road, but that is
okay, we will call
it a household
products company…
Windstream, we like…
this stock is now
down to $7,
unbelievable, we
like the yield, they
just declared the
yield recently, they
declared the
dividend, it is a
Telco company…
Proctor & Gamble,
recently sold it for
my charitable trust,
I really feel that
Mr. Lavilly did not
do a good job, I
hate saying that,
but this was a bad
quarter for Proctor,
I hope good luck for
them in the second
half, Warren Buffett
and I have that in
common, we both cut
our Proctor &
Gamble… and Disney,
well diversified
entertainment
company, I think
that Bob Eiger is
doing a good job,
nobody wants to be
in entertainment or
anything having to
do with copyright
anymore… but here we
go, entertainment,
we got household
product, we got a
drug company, we
got, well this is
hardware household,
and Telco…
I am saying that
that is enough
diversification… I
am appreciating that
portfolio… and I
like also its yield
aspects… it has got
a lot of yield in
it.
Verdict:
YES,
Diversified.
Next portfolio
analysis by Jim,
below...
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Continued below...
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Wednesday,
October 22, 2008
(Cont'd from
above)...
▼ ▼
▼ ▼
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Jim (cont'd):
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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C |
2.91 |
Citigroup (C)
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KMP |
48.35 |
Kinder Morgan Energy Partners
(KMP)
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V |
56.15 |
Visa Inc. (V)
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FPL |
48.40 |
FPL Group Inc. (FPL)
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BAC |
4.57 |
Bank of America (BAC)
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Caller:
My top five stocks
are
Citigroup (C),
Kinder Morgan Energy Partners
(KMP),
Visa Inc. (V),
FPL Group Inc. (FPL),
and
Bank of America (BAC)?
Jim:
Alright, let’s
consider the fact
that Erica is
starting out, she is
24, this is a great
time for her to
start out… you know
why, because she can
make mistakes and
has got the rest of
her life to make
back the money… and
she may not exactly
understand the rules
of diversification,
but that is why you
call… if everybody
was totally
diversified it would
be a useless
exercise, alright…
now here is the
thing… Citi and Bank
of America, we are
just going to cut
right to it… these
are two largest
financials and they
are Dow stocks, that
concerns me… by the
way, I think both of
those could come out
of the Dow, and
purely
coincidentally Visa
would probably be
put in, because that
is I believe a $40b
company now… so, we
have two financials
so Erica has got the
wrong thing going
there… the only
financial that I
want her to own is
Visa, because it
doesn’t have any
credit risk… FPL, a
very solid utility,
I like it more than
Tyco Energy… Kinder
Morgan, this is a
natural gas pipeline
that has maintained
its strength the
whole way… what does
she lack… she lacks
a drug company, or a
healthcare company,
maybe even a
bio-tech company…
and she lacks a
diversified
industrial… and I
think there are
plenty of those
around, including
many accidental high
yields… but you know
what, I applaud the
fact that she is
getting started and
called early on…
Erica, make those
changes you won’t
regret it… you
really got to be
diversified here…
because it is one
nastola market.
Verdict:
NO,
Not Diversified.
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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PG* |
50.95 |
Procter & Gamble (PG*)
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BRK-A |
80000.00 |
Berkshire Hathaway Inc. (BRK-A)
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UTX |
44.85 |
United Technologies
(UTX)
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CHL |
45.48 |
China Mobile Limited (CHL)
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DSX |
13.63 |
Diana Shipping (DSX)
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Caller:
My five stocks are
Procter & Gamble (PG*),
Berkshire Hathaway Inc. (BRK-A),
United Technologies
(UTX),
China Mobile Limited (CHL),
and
Diana Shipping (DSX)?
Jim:
Alright, let’s take
a good hard look at
this… Proctor &
Gamble, that is a
diversified consumer
products company…
United Technologies
would have been a
terrific idea for
Erica, when she
throws away one of
the banks to add an
industrial… United
Technologies is now
starting to repel
the whole gain for
the last five years,
I think that is an
interesting company…
China Mobil, I don’t
mind a little spec
situation in China,
I prefer to own an
ETF, but China Mobil
has got good growth…
Berkshire Hathaway,
my friend Doug Cass,
RealMoney.com,
TheStreet.com,
where I am chairman,
has been real
critical of what
Buffett is doing, I
join that today by
saying that I am
struggling to
understand what
Buffett is doing
with his portfolio,
that said, he is a
great man, the stock
is a diversified
portfolio in itself…
and then Diana
Shipping, I have
dished
Diana,
I don’t like it… but
we have got a
shipping company, a
consumers product
company, a Chinese
company, an
industrial, and the
greatest investor of
all time who may
have a bit of a
tough streak…
That is diversified
as far as I am
concerned…
Verdict:
YES,
Diversified.
[verbatim recap]
[end of segment]
Read Jim's next Segment
here
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Read Jim's next Segment
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