After OPEC's failure to meet a consensus on raising output this week, it looks like oil prices will continue to rise. We think this means continued growth for Chevron. It's been a tough couple of months but the stock closed at $101.23 today after bottoming out in the $98-99 range. Credit Suisse, S&P and others have a target of $118 to 120; I think CVX will reach that by August.
Looking for Coke to rise above $70 by August. It's trading around $65 right now.
The stock market took it on the chin today, after Standard & Poor's downgraded the credit rating outlook of the U.S. Meanwhile the CBOE's VIX volatility rating has been very low, indicating investors have become complacent and are ignoring bad news. That's not necessarily a good thing for the stock market. This kind of attitude usually appears toward market tops. I'm looking for some better earnings this week and next to propel the market and keep the bull going for another few months. Hopefully, that will happen.
The markets are closed Friday, so there will be 4 days of trading, and what will the week hold? The watchword is "Earnings!" What will they do to the markets? Chevron's earnings will be announced the week after Easter; we're looking for a gradual rise and then a pop to the upside. Also an increase in dividends to $3.20 a year, 80 cents a quarter. It's the least they can do for their shareholders; they're making so much money.
Weather is getting better here in Chicago; almost time to plant the garden. Hopefully everything will rise in the spring!
Okay, the oil stocks have had a couple of rough weeks, but now it's time to start the spike. Chevron is around $105, down from $110. Up over a buck today, we expect CVX to surge when earnings are reported near the end of the month. We may be wrong, but would you bet against $105+ oil?
Coke continues to impress, but we're excited about Wal-Mart. Looking for WMT to push the $60 mark this summer, which would be an all-time high.
Anecdotal evidence seems to support a strong recovery. Are you experiencing the same thing? Have you tried to book a brunch for Easter? The restaurants are all full! My Serbian neighbor's mother is a maid at the local Hyatt hotel here in the Northwest suburbs of Chicago, it's fully booked through the month of April! All right, maybe that just proves the rich are doing okay in this economy, but I don't know -- I think things are looking up all around. And is anybody you know decreasing their spending because of the price of gas? Do you know any of these people who are supposedly going into hunker-down mode? Me neither! That's why I'm so bullish on Wal-Mart.
Okay, Happy Investing. Remember, the best things in life are free, but the next best things cost a lot of money!
If you're like me, you don't like paying north of $3 bucks a gallon for gas. What's a driver to do? Buy energy company stocks, like Exxon or Chevron! Both pay a decent dividend, and Exxon reported big earnings today, as did Chevron Friday. Exxon was up $1.69 to $80.68 today, and Chevron was up $1.56 to $94.93 after a bit of profit-taking Friday. They were the #2 & 4 rising stocks in the Dow Jones Industrial Average today (Alcoa and IBM were #1 & 3, respectively).
When you curse the extra $5 bucks it takes to fill your tank, just think of the $72 dividend Chevron is going to give you in a couple of months, and all your troubles will go away....
Now, it's time for me to enjoy the cure for sitting at the computer all day; I'm getting a massage. Ciao!
Walmart climbed $1.23 today to $57.26, close to our target of $58. Maybe this strength is in response to the rise of the dollar today. Also getting some good press from Michelle Obama's initiatives on healthy eating.
Chevron holding steady at $94.08. Gotta think it's ready for some "back-filling", a good opportunity to buy some more. Heck, if I'm gonna pay $3.50 a gallon at the pump, I'm gonna want Chevron to at least lay some of that $72 dollars-a-quarter dividend on me.
Coke steady at $62.96 after a minor correction. Positioned well for any "flight to quality" buying should the market correct.
Looking for a correction in February/March...have your puts in place.
Now it's time to listen to the President...the state of the union is indeed strong....huah! huah!
Chinese President Hu Jintao came to Chicago today & met Mayor Daley. Maybe Da Mayor tried some Mandarin on him; God knows the President wouldn't have been able to understand any English coming from Daley.
Speaking of China, how bout dat Walmart! Was up over a buck today for a while. We're long, looking at a target of $58; it closed at penny shy of $56 today.
Chevron and Coke are experiencing some profit-taking. We're looking for them to rise into the inevitable February/March correction.
I mean, come on, does anyone expect this Bull rally to last much longer? I give it 2 to 4 weeks, then, have your puts in place for a hedge.
Liking IShares MSCI Singapore Index (EWS) as a way to get into the Asian market. It's at $13.71 today. Down 16 cents, but the future is bright.
We think gold still has a way to go before it corrects.
Bracing for a sub-zero night here in Chicago.....Go Bears!