I can be Huge too

[billyjoe]

antioch, I'd pick DAL over KLAC in a minute. Your analysis of KLAC is right on. It's not a bad stock, just not the best time for it to move. On the other hand DAL as most major airlines are on a roll and it's not going to end in the next few weeks. The recent nuclear deal with Iran should mean lower fuel prices which will boost airlines even more. Good luck with your decision.

-----------------billy

[antioch6]

I'm going through some issues while looking for another stock to buy. How deeply should I look into these companies I'm buying?

At first glance, I like KLAC. The business is fairly stable on paper for the last 5 years. They are making money with an 18% net profit margin and 15% return on equity. They only need to spend about 10% of their annual net cash on maintaining operations, leaving a large amount of money for paying dividends or socking away in cash and cash equivalents. They aren't growing, but at the current share price you are getting a 7.5% free cash flow yield and a 2.5% dividend for an annual 10% return on your money. The business however is cyclical and undiversified. They depend on demand for electronics and derive more than 30% of their business from three companies: Intel Corporation, Samsung Electronics Co. Ltd., and Taiwan Semiconductor Manufacturing Company Limited. Probably there will be growth from 3D printing and Bioprinting, and the stock is in favor at least as strong as the general market.

What makes me hesitate is the cyclical nature of the company. This seems like an industry you buy when earnings are depressed, and sell when they are showing great earnings like today. There is competition and the possibility of lower margins. So to repeat myself, this stock looks good through my screen, but a closer inspection makes me think it's not the best place for my money.

I still like DAL, Delta Air Lines Inc. The stock is up 50% from where I was queing up my buy order three and a half months ago. What made me hesitate? I didn't investigate fully into this idea, so I lacked the confidence of buying a strong company. I need to remember what a stock represents, and that it should only be worth something because the company is going to make money. There are only a few major airlines today, and every plane is packed to capacity. There is room to double margins and the stock could still double from here. I want to buy DAL stock, but the stock feels a little too hot in the short term. From previous experience, I should buy some now just in case I never get a pullback, and buy more if I do get one.

[antioch6]

I'm changing or upgrading my selection process some. Also changing the way I present my dumps. Will lead to more thorough and detailed ideas. Instead of just ticker symbols, companies listed with a short description of what they do for money and how they can grow or what can go wrong. Shooting for a 33 stock dump per week.

[mimo_100]

Just heard about and started using AdBlock. It's a free browser extension that... blocks all the ads you get on the internet. Got it for my Google Chrome browser. No more ads praise the lord.

Hello A6,

Thanks for the tip. I downloaded it and it works fine with the standard Chrome window. It DOES NOT however block the incognito window ads.

Tim

[riverbabe]

Just heard about and started using AdBlock. It's a free browser extension that... blocks all the ads you get on the internet. Got it for my Google Chrome browser. No more ads praise the lord.

Thanks for the info. Just downloaded it. Hope it works!

[antioch6]

Just heard about and started using AdBlock. It's a free browser extension that... blocks all the ads you get on the internet. Got it for my Google Chrome browser. No more ads praise the lord.

[antioch6]

Here is my dump for this weekend.

GOOG BOFI TESO UTHR CMCO SYMC GSH AVGO ITW ECOL MMM COV BOLT VFC CUZ HOT WIT SLB SNDK CLC SCHW OII CRR A ZMH SNHY AFOP PTEN GIL BID MOV NBL ASML XEC SYNT PCP JOBS GPRC INVN ICON GTE WAB NATH CTSH AGX CLFD HF BH KEX WX FSS MTD KLAC.

There were also plenty of regional banks, insurance and aerospace companies, but most are in previous dumps. I already own KRE and LMT to cover those areas.

[antioch6]

I got in a bit late today to buy these 3 companies, but anyways.

THI 60.44
SWHC 11.15
UNP 153.8

One percent allocation to each. This brings me just over 10% invested in stocks. My goal is work my way up to 25% invested over the next 12 months. Reminder to anyone following the picks in this thread, stocks are mechanically screened with the purpose of outperforming the market as a whole. Each pick shouldn't outperform, but as a group they should. I plan to keep investing (while staying alive financially) for at least the next 33 years.

[Duniyo]

Just brought UNP, it looks very solid stock. 20% Coal exposure isn't as bad as I expected. I brought 50% now and wait until December for the other 50%. I am buying it for a long term 1-3 year period.

[antioch6]

antioch6 UNP looks very good. My only concern is war on coal, do you know what percentage of UNP income comes from coal transportation?

From their SEC filing: Freight Revenue - 20% Coal, 20% Intermodal, 18% Industrial Products, 17% Agricultural, 16% Chemicals, 9% Automotive.

[Duniyo]

antioch6 UNP looks very good. My only concern is war on coal, do you know what percentage of UNP income comes from coal transportation?

I'm picking THI, SWHC, and UNP. Tomorrow I'll buy all three of them at the open. Took a minute to finally pick three. Anxious to find out how they will perform vs the market over the next 12 months.

[antioch6]

I'm picking THI, SWHC, and UNP. Tomorrow I'll buy all three of them at the open. Took a minute to finally pick three. Anxious to find out how they will perform vs the market over the next 12 months.

[Duniyo]

I narrowed mine down to a Top 9. CHDN, THI, SJM, BRCD, AFSI, SWHC, AGCO, UNP, PNG. I don't know which will be the best pick, or if you're screened results will be better picks. I need to choose 3 and put 1% into each. Will think about it down at the casino and in the city tonight.

SJM had amazing 5 year run. Surprisingly, SJM chart is similar to most of picks if you hold the chart upside-down. WHO said duniyo can't huge?

[antioch6]

I narrowed mine down to a Top 9. CHDN, THI, SJM, BRCD, AFSI, SWHC, AGCO, UNP, PNG. I don't know which will be the best pick, or if you're screened results will be better picks. I need to choose 3 and put 1% into each. Will think about it down at the casino and in the city tonight.

[billyjoe]

antioch, I ran your dump through numerous screens, relative timing, industry group strength,projected sales and earnings, 10 day average, 65 day average, eps growth trend, and came up with a top 10 although the top 5 stand out above the rest. WGO, SNDK, PRAA, UTHR, DLTR, CI, GTE, WX, AVGO, COO..................good luck

-------------------billy