Here is an article that should please you.
barrons.com
Here is part of the article. Its an interview with Al Frank who publishes Prudent Speculator Newsletter.
Q: Are you still long IBM?
A: Yes. Now when we look at IBM, our goal price is 185 1/2. Of course, these
goal prices change with quarterly reports, with news and with increased margins,
earnings and sales and all that - with five-year growth rates. So now, even though
IBM stock is trading near where we first suggested selling it, at 170, we're just going
to sit around and wait for it to trade at 185 - and pray that our analysis doesn't call
for an even higher price at that point. Because at some point, you do want to sell
some of these things when they're fully valued. But we go by our discipline. That
same discipline is now allowing us to buy Apple.
Q: Certainly a stock that has lost its
shine.
A: Emotionally, I'm not too thrilled, but
it's a recommended stock because we
follow our discipline. I have never been
an Apple fan. I always thought they had
a terrific graphical user interface, but
made a big mistake in remaining
incompatible and settling for their 10%
of the market or whatever. Many years
ago, I recall, you could make a career
out of buying Apple under 25 and
selling it over 50. It made about three round trips, when I was teaching. Now, our
goal price for Apple is 35 1/4, so we can buy it at prices up to 17 5/8. But you
know, we are wrong 25% of the time.
Here are his recommendations for a portfolio:
AAPL, BS, OASI, SYM, ZOOM, FTSP, NAV, SCR.A, VF, CYM.
I am of the opinion that AAPL is a very good buy at its present price. The problem is I thought it was also a good buy at $23!! What I made in other stocks in my portfolio I lost in Apple. Maybe it is time to get in again and buy the stock dirt cheap and regain my losses.
Maher |
