So instead of transferring over all 15 posts from my other blog, I opted instead to convert them into 1 HUGE post outlining what research I’ve done thus far. So keep in mind this isn’t the whole story as this only goes up to around the beginning of the month as I haven’t had time to post anything new or relevant lately, although I do promise to had something solid very soon. Without further delay, The Stuff!
Who watches the watch-list?
So for starters, here is my current watch list of stock I may be investing in, in the future (hopefully sooner, rather than later):
1. Johnson & Johnson ($JNJ)
2. SciClone Pharmaceuticals ($SCLN)
3. Herbalife ($HLF)
4. France Telecom ($FTE)
5. Microsoft ($MSFT)
6. Ecolabs ($ECL)
7. McDonald’s ($MCD)
8. Southwest Airlines ($LUV)
9. Coca-Cola ($KO)
10. El Paso Electric ($EE)
11. Vodaphone ($VOD)
12. American National ($ANAT)
13. Ford ($F)
14. Pfizer ($PFE)
15. Jet Blue ($JBLU)
16. Conoco Phillips ($COP)
Whew, that’s a load. Well, you may be wondering why the list is so long. Well, each of these stocks meets a set of criteria I have laid out for myself, in which a company must at least have: 1) A dividend; 2)Positive Cash Flow; 3) A substantial amount of time existing (this may be confusing, but I will explain later); and 4) I can buy them directly, without having to go through a broker.
You may be thinking “there are hundreds of stock that meet that criteria, why these ones?” and you would be right. There are hundreds. These made the cut simply because I don’t have time to look over 250 stocks a day to make sure I am 100% optimal. These are all solid companies and have some reasoning for each which I will discuss forthwith (in no particular order).
France Telecom ($FTE) for me is basically my “gamble” play. For some backstory on this, I often find myself watching Mad Money on CNBC because I find the show very entertaining. I however, understand that at the end of the day it is Cramer’s job to get ratings not provide sound advice (which if you think about would be largely impossible in a 45 minute show). However he has taught me two things which I love and endorse fully. First, DO YOUR HOMEWORK. I can’t emphasize this enough. Don’t listen to what anyone tells you is a good deal or a bargain buy (even people like Cramer for example) but rather put in the legwork and research to determine if it’s a smart buy for you (I.E., meets your level of risk tolerance, has credentials you desire, etc.). Second, Cramer suggests you should always have a speculative stock to keep you interested. If investing becomes too boring or tedious, you may lose interest and stop keeping up on your portfolio which is stupid on many levels. Having a “long-shot” stock can keep things exciting and keep you checking which will allow you to make better moves overall. I love this advice. I’ve chosen to go with $FTE (aha, back to the important stuff) because they are a monster telecom covering all of France as well as Spain, Portugal, and now huge chunks of the Middle East. What’s great about them is they provide all facets of service (TV, Internet, Home Phone, and Wireless) and for the most part are fairly recession proof since even if the economy is bad (as it currently is across the lake) you still need a phone. This company also provides a hefty dividend (about 13%) which is oddly high, but factors out to around a dollar per share annually which is nice. Here’s a somewhat recent snapshot courtesy of ycharts.com.
El Paso Electric
El Paso Electric ($EE) is actually the electric company who provides service to my current place of residence. While their customer service is somewhat lacking on the bill paying end, having now gone through a degree program that focuses on utilities I have learned enough to see that they are a pretty solid little company. Little of course being the operative word. Comparatively speaking they are a small utility (about 1/3 the size of NM’s large utility PNM). However, I have had the opportunity to meet a pair of the board members and they left me feeling that the company (and its shareholders) was in very good hands. It pays a nice dividend and has most of the other perks I look for when finding a stock. Here’s their Chart:
Next up, for those who have been following me know I want a telecom and preferably a foreign one. Enter Vodaphone ($VOD). It seems to do a lot of the things I liked about $FTE, but even better, it owns 45% of Verizon wireless which is pretty nice. There have been some unsettling articles lately about them selling out their VZW ownership which takes away a huge amount of the upside for me (as I see that VZW ownership as a nice nest egg in case of trouble). Of course, I could be mistaken there, but I think if they manage to keep their ownership this may be the telecom I want and get. I will say though, I find that while some people have told me to avoid $FTE like the plague, I find the entry price super appealing right now. For around 100 dollars I could get 10 shares, and each quarterly dividend would buy me another half share, which is awesome. Plus, I’ve pissed away $100 recently at a casino on ONE hand of “war.” So the minimal investment there is also a plus. Here’s their chart:
I picked this stock simply because I love this company. I recently became a rapid rewards member and have flown with Southwest the last few times I’ve flown. Their customer service is top notch. They have almost all the financials I love and their planes and overall flying experience is delightful. While their dividend is basically non-existent, it’s still a dividend. Also, at around $12 a share, a small investment ($100-$250) provides for minimal risk and a reasonable return. Check out their chart below.
Coca-Cola ($KO) as a company manages to hit all the high points I look for when exploring a new investment opportunity. Strong sales/growth, good value (i.e., it’s not $200+ a share), and a solid dividend. Coke provides us with 2.88% or about .52 cents a share. That’s not too shabby (although it isn’t great either). Coke also happens to have around 2 billion in walkin’ around money, which when coupled with a low debt/equity ratio tells me they are available to be paying out said dividends. I also figure it is worth noting that Coke is considered one of the top 10 most reputable companies and has been around for an excruciatingly long time. Coke has also managed to start expanding away from just Soda and into teas and healthy juice blends as well (Odwalla being that brand). Coke seems to have a good head on its shoulders and a solid management team. Pair all that up and you get what looks like a great long term investment. Here’s the chart for them.
If you’re interested in the rest of the stuff on the watch list, feel free to scroll through the other site theltai.blogspot.com
. I have some screen caps for Pfizer, SciClone, and a few others, which upon further review I am on the fence about keeping on my watch list. Funny how that works out eh? Pfizer is likely to stick around though since they make products like Viagra, which is win city. Let’s all be honest, there is a product that will never cease production. So that’s a good sign for them.
I also have a whole spiel on Herbalife, which until recently I was behind the company. Now, well lets just say it ain’t looking so good for them.
I think that will conclude my work for today. More likely than not I’ll have something new up tomorrow so I can start fresh and you guys/gals can abandon the other site like I intend too. Till next time!