"THAT'S JUST MY OPINION" - VOL - 14
Did you know there are many hedge funds and mutual funds that are under performing the S&P Index by 10%! So what you say! I'll tell you what - they have to catch up with the market before year end or they will lose clients! They only have a month and one half to accomplish this feat. Watch the high beta stocks in the next few weeks that is the only way they can catch up. What is a high beta stock? Let me describe it this way. When the market goes up 10% - the high beta stocks have a tendency to go up 12 to 15%. An example of a high beta stock would be AMZN and AMGN, just to name two. Believe me there are many more.
Pay attention to what the big money is doing. Warren Buffett's, Berkshire Hathaway buying $3.5 billion worth of Exxon stock and selling 44% of it's stake in Conoco Phillips.
George Soros selling part of his holdings in GOOG and one of his recent purchases was AMZN.
Bill Ackman's hedge fund acquiring 10% stake in both Fannie Mae and Freddie Mac.
Kimberly Clark hires Morgan Stanley to spin off their health care unit. These spin offs tend to be big winners in the long run. Examples would be ABT spinning off AABV, MO spinning off PM - both spinoffs huge winners for investors.
Pay attention to AAPL. Carl Icahn owns a large stake in this stock. He wants Bill Cook to increase AAPLE'S dividend and to increase it's buy back program. It has not happened yet - watch Carl sell some of his shares just to some pressure on Mr. Cook. I'm not saying that AAPL will not increase it's dividend or increase it's buy back program in the future - Carl is a very impatient person. I also love AAPLE stock for the long term but the short term could be interesting.
The same goes for GOOG. I love this stock in the long run but do not be surprised if it sells off to around $980 a share only because hedge funds and mutual funds that own this stock may want to take profits so they can get into high beta stocks before year end. "THAT'S JUST MY OPINION"
I have been asked about my sell call on BAC. I owned it between $12.07 down to $11.89. I sold it around $14.12. I took that money and invested it in AIG - I have not lost any ground on this transaction! The reason why the bank stocks have rallied in the past couple of weeks is that the street feels that the yield curve will steepen, which is great for banks. That thinking remains to be seen.
With Janet Yellen to be nominated as the new FED Chairwomen, I do not believe we will see any FED tapering soon! "THAT'S JUST MY OPINION"
I was asked about BA - I love this stock over the next 5 years, however with this contract dispute you hear from the pundits very soon about how they will not be able to keep up demand. So I would start buying this stock on a pullback to around $126 a share.
I was asked about AMGN - same story- I love this stock for the long haul. If this stock gets to $107, I think it should be bought.
I was asked about AMZN - same story - I love this stock. If it pulls back to around $341 to $326, I think it needs to be bought.
"THAT'S JUST MY OPINION"
Thank You;
Len Dwelle
http://marketmoneyandnews.blogspot.com/
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