Jim:
Tonight, we're
trying something
different for next
week's Game Plan...
We had a nice taste
in our mouths at the
end, right... So I
am now going to put
you inside me head,
and tell you what
I'm going to be
doing this weekend,
in order to prepare
myself for next
week's show.
A little "inside Mad
Money" baseball to
not just tell you
the stocks I'm
thinking about for
the week ahead...
and I'm charging
into the week
bullish, after the
two days' beatdown,
and then rally...
but to teach you how
I find them... I
always like to say,
"Give a man a fish,
he eats for a day.
Teach him to shop at
Whole Foods, and
this economy goes
broke in a week"...
See all
of
tonight's
stocks
mentioned
on
Yahoo!
Finance,
here...
Friday,
November 7, 2008
(Cont'd from
above)...
Jim (cont'd):
In this market,
every weekend, I
look through the
charts for stocks
that have been
knocked down and,
more important, have
good dividends. I
get them right from
the S&P 500, with
the help of my
friend and
colleague, Dave
Pettelier... Every
day, I cull a new
list of S&P 500
stocks that have
gotten "accidentally
high yields,"
courtesy of a
rapidly-declining
stock price... which
we had on Wednesday
and Thursday...
These once-puny
dividends now give
us yields to protect
us against downside.
Because, as a stock
price falls, its
(dividend
percentage) yield
increases, making it
more attractive to
other buyers, and
giving us a better
and safer return.
Now, we're looking
for dividends that
are going to be
paid... safe
dividends... That
means the company
will earn more than
twice the dividend
payout. That is our
test for that
yield... 4% or
more... that
intrigues us...
So, looking at the
charts and the
dividends, what hit
me this week?...
What hit me after
Thursday's decline,
and is still good
after today's
rally?...
That's a regular
semiconductor
company. It doesn't
have a lot of things
that are
proprietary... but I
was surprised to see
it yield more than
4%. It's got a
decent return.
Yet, right next to
it is a true
shocker...
Intel (INTC)...
Yeah, Intel, which
is totally
proprietary... one
of the great
American
manufacturers that
produces the brains
behind most of the
PCs in the world.
This is yielding
right around 4%.
Call me intrigued...
INTC is definitely
worth looking at
over the weekend...
It's a diaper and
tissue company...
think Huggies and
Kleenex... with a
bunch of missed
quarters... Not
really all that well
run, but a brand
name to die for and
it yields 4% now. I
say it's worth
looking at again,
given that diapers
are made from
petroleum
derivatives, and the
price of petroleum
has plummeted. It's
definitely worth
looking over KMB's
last quarter. That's
my mission for
tomorrow morning...
This one's a
bargain, with raw
costs coming down,
thanks to a
commodities
collapse... and a
portfolio of
low-priced,
"trade-downable"
foods like Ritz
Crackers and Mac and
Cheese. I own it for
my charitable trust,
ActionAlertsPlus.com,
so I've done the
homework...
After years of
restructuring, I
don't even need to
tell you, or
my subscribers,
what I think of it.
All you need to know
is that I bought
some for the
charitable trust
earlier this week
when it was yielding
over 4%, and I will
revisit it
anytime... anytime
it's at that level,
because of that
plethora of good and
low-costs foods.
There are a bunch of
utilities that
surfaced this
week... but I don't
need them...
... because we've
already got
Duke Energy (DUK),
and talked to the
CEO earlier in the
week. How great was
that? That Mr.
Rogers fella...
without the
sweater...
Finally, two more
that really make my
mouth water...
Here are two
industrials that I
never in my life
expected to see with
4% yields. IR has
reinvented itself,
and has some
terrific less
cyclical businesses
like climate control
and security...
And Emerson?... This
is one of those
fantastic
conglomerates, with
tentacles in
everything...
including all sorts
of process controls
that have to do with
energy conservation
and power
transmission. I am
liking this one a
lot.
You can, and should
do, this exercise
too. There might be
some of these that
you already know and
like. As long as
I've got that
(dividend yield)
trampoline
underneath... that
safety net... I am
going to keep coming
up with these kinds
of stocks.
Oh... and there's
one more stock that
I'm going to be
taking a look at
this weekend...
Google, Inc. (GOOG)!...
Because we're about
to talk to the man
who runs it... a
friend of Mad Money,
chairman and CEO
Eric Schmidt, who
has just left a very
important meeting
with Obama's
Transition Economic
Advisory Board...
This is a dream team
of people, and I am
so glad to find out
the scoop from the
man I think has done
more to make the
market a better
place than anybody I
know, Eric
Schmidt...
Eric, come on! You
were in the inner
circle... What was
it like?...
● ● ●
● ●
Jim's comments AFTER
the interview:
Eric Schmidt...
chairman and CEO of Google, Inc. (GOOG).
Thank you for giving
us that update.
Really appreciate
it... great work,
great work!... I
feel better.
