Saturday, March 7, 2015

Watchlist March

There is not much of a watchlist this month to get excited about. The market is undergoing PE expansion and I am having a hard time finding deals. I personally want to avoid the oil sector for now.

Some names I am currently watching:
Check out the utility chart page to see their recent declines:
I believe the price will fall further. The fall currently is in anticipation of interest rate hikes. When interest rate hikes do happen there will be a sell off which will be my buying opportunity.

Since next month is April, some stocks' ex-dividends are coming up. These include:

I will most likely add more to these positions in the coming week. Of the list above I would say PM is undervalued and KO is fair value. WMT has a pitiful increase in dividends this year but I still believe in their business, which still churns out revenue even during recessions.

In the industrial side I am finding the following stocks interesting:

CAT and EMR are cyclical and are experiencing cheaper prices due to the fall in oil prices. These stocks have been paying dividends for decades, with EMR being a dividend champion. Both have dividend yields over 3%.

CSX has railroads in the east of the USA. I currently hold UNP which operates on the west side of the USA. Having CSX will complete my holding of railroads in the entire USA. I believe CSX is approaching fair value.

LMT has been on a large climb, but that was because of their PE undervaluation years before. Now LMT is sitting slightly above its 15 year PE average. The PE of LMT compared to the other stocks I am looking at is also lower. LMT has a PE of 17.83 and a forward of 16.06 which doesn't look too bad in today's high PE environment. GWW is sitting below fair value right now and is an interesting addition to my industrial holdings. GWW has a low yield but a high growth, very low debt, strong credit rating, and dividend aristocrat status.

1 comment:

  1. Thanks for sharing your watch list, I just bought shares of PNY but was strongly considering PM as an alternative as well.