Thursday, May 19, 2016

Watch List

Federal Reserves interest hike
Brexit
Slowing down of US/world economy 
oh my

The world is going insane and so are the markets. Let's go buy some stocks. Note: the words "fair value" refers to when I average all the analysts "fair value." I'm not an expert on anything so don't follow my guidelines. For all I know the market might crash tomorrow and we all lose 50% of our portfolio.




  • Hormel Foods (HRL)- fair value $32-ish, want at $30; 2%-ish
    • HRL has a historic value of 21.9 which makes the fair value below $32 which is my target price.
    • I would really want to buy HRL at $30 which gives me 2% yield and a discount 



  • Walmart (WMT)- Currently at historic fair value, want below $60
    • I predicted WMT to miss earnings and drop down to the 50s. I predicted wrong but the fear of interest rates and brexit might push this champion back down  



  • Unilever (UL)- fair value $40, want at $38; 3.8%-ish
    • UL is currently overvalued. A blend of different analyst valuation gives it a fair value of $40-ish
    • I would like to buy at $38 and get a near 4% yield. It'll be hard to knock down a consumer staple but I'm hoping England leaving the UK or just the fear of England leaving the UK causes this hero to crash



  • Flowers Foods (FLO)- currently trading at historic fair value, want at $15.5-16; 3.5%-ish
    • My goal is to make FLO to 300 shares and finish off my position 
    • I would like to buy at my original entry price and get a 3.5% yield if possible 




  • Realty Income; fair value $53-ish, want at $50; 4.8%-ish
    • According to all the analyst the fair value of O should be somewhere around $53
    • I would like it to go to $50 for a nice 4.8%. Some only buy O at 5% which would be $47.8. Either one is fine by me.




  • Johnson and Johnson (JNJ)- fair value is $110, want at $95-100; 3.3%-ish 
    • JNJ fair value rose after meeting Q1 expectations 
    • JNJ is considered one of my core holdings. I currently have 65 shares and would like another 35 to finish off this position. With a price of $95 and 3.3% I'll have no probably sleeping well at night during the next recession.

I have $2500 saved up for this occasion. It's not much but it's all I have. I think Dividend Hustler and D4s spend this much on one buy lol. 

Here's hoping for a fun time to all you buyers. Hopefully, the market will provide some value. 

6 comments:

  1. Thanks for the list, I've had my eye on WMT and FLO as well as CSCO but CSCO and WMT both beat earnings estimates which pushed the share prices up a bit. I just made a recent purchase so I don't have the money to make another purchase yet anyway. As you said I'm no Dividend Hustler/Div4Son either. :-o

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    1. hey CD, i know how do these guys have this much money. this is from my part time job driving routes for starbucks. I agree it kinda sucks that WMT beat estimates and drove the price up. Oh well soon there will be more opportunity

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  2. Don't worry too much about how much you've got in your pocket to invest with. The fact that you've got the melons between your legs to invest while the market is dropping is enough of sign that you've got your head on straight. Nobody can predict a floor (or at least most of it) so it's great that you've already predicted a drop and could get in while prices are ripe for the picking. Get it! :)

    -Dividend Reaper

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    1. hey DR, sometimes i need steel melons to deal with all these mass hysteria about the market crashing. thanks for visiting

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  3. Broke Investor, nice summary/watchlist. I assume you mean England exiting Europe and not the UK. Scotland and Wales wouldn't know what to do :). Just joking, I'm sure the scots want nothing to do with the English.
    D4s

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    1. hey d4s, i have no idea what would happen if the english left. I have a feeling everyone will follow but we never know. maybe mel gibson might come and free the scots. lol thanks for visiting

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