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With the market dump late into the session I did not pick up any stock yesterday but today is a new day and these choices are looking more of a value than ever. Which stock would you pick?
1st pick would be LAD. 2nd choice, AGO. LAD is highest rated overall and in the strongest industry group. AGO is in the 2nd strongest group. All the stocks have great earnings.
My list is too big this week. Help we whittle it down. Suggestions?
PLAY
LAD
AGO
MXL
SPR
GM
MAS
GILD
Thanks!
The Good:
LAD and MXL are good, but risky plays. I think LAD may be due for a correction, and wouldn't buy right now.
AGO, also looks really good by the numbers, but again this one may be risky due to the nature of the bond business. It could all end for them really quick, and really badly.
The Great:
SPR looks really good to me, and it'd likely be a toss-up between this one and PLAY, if I had to pick the best.
I also like MAS, as #3 behind those two, but also the risk here is that its business is cyclical, and we're in a housing boom time. Once it's over, this one will pull back to earth. Wouldn't be a bad play to ride it for 10-20% now, with a tight stop.
The Rest:
I won't comment on GILD, except to say I wouldn't be a buyer now.
I will say that while GM looks great from the balance sheet/revenues now, you'll probably be sorry if you buy it for a long-term hold. If you really do feel like going with GM as a buy&hold play, I would suggest you consider TM instead.
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