Saturday, July 20, 2013

Investment Idea Sharing for July 20, 2013

This Week's Activity – July 20, 2013:
This week, the Japanese Nikkei 225 index continued its recovery, ending on July 19 at 14,589 up from 14,506 last week, but still down from 15,381 on Monday May 20.  This is now only a 5.2% drop in 9 weeks.  This week, the Dow ended at 15,543, up from 15,464 last week, now at a new all time closing high.  So, there is no obvious drop or correction going on here.  The market is still hoping Mr. Bernanke and The FED will keep the easy money policy and low interest rates going.  I am continuing to look for companies with good fundamental financial values that are near their 52 week lows.

The FED is continuing to do Quantitative Easing (QE) to hold interest rates low until unemployment gets to about 6.5% from the current level of about 7.6%.  Here is a good Wikipedia article about how Quantitative Easing works http://en.wikipedia.org/wiki/Quantitative_easing.

Even though the FED is continuing QE and also holding the Prime Rate at 3.25%, the 30-year Fixed Rate Mortgage rate has gone from 3.35% in Dec. 2012 to 4.07% in June 2013.  This means that regular people are paying higher interest rates to buy a house even though the big banks can still borrow at Prime. So, even though the FED is not raising rates, the overall market IS raising rates to you and me.  I think this is a good sign and should help to lessen the shock waves that will happen in the stock market when the FED finally does raise the Prime rate and stop the Quantitative Easing (QE) buying of Treasury Bonds. See weblinks to historical values for both of these rates at the Ultimate StockFinder “Links” page http://www.ultimatestockfinder.com/websearchlinksindex.html 

StockEvaluator “Short List” shows only companies that are within 5% of their 52 week low AND have less than 5 Red cells.  This week only 9 companies are on the short list.  None of them look good to me.  The two biggest in terms of sales revenue are PBF and RWE.DE.  PBF has very high Debt to Equity at 221%.  RWE.DE has Balance Sheet values on Yahoo Finance that only go up to year 2009, so these values are too old to use for making any buy decision.  The four Closed End Bond Funds are down because the market is already driving bond prices down in anticipation of the FED starting to raise interest rates sooner rather than later.   
MutualFundEvaluator “Short List” shows funds that are within 3% of their 52 week low AND have less than 3 Red cells.  This week’s list has 25 funds.  They are all Bond funds, which are continuing to go down in anticipation of The FED raising interest rates.  I am continuing to wait on any bond fund buys in hopes they can go even lower.

“Volatility” sort shows only companies that have: Average Daily Price Volatility >3% ;
Within 10% of their 52 week low ; Less than 6 Red cells ; Profit >0% and Dividend >1%.  This week’s list has only 3 companies.  None of them look good to me this week. 

Next Monthly Meeting 2nd Tuesday of every Month:
Tuesday, August 13, 2013 , 7:30 PM at my house. 

Here are my Stock BUYs for Last Week:
Buy   Company   Buy
Date  Bought     Price    Target Sell
----- ---------   -----  ------------
none

Here are my Stock SELLs for Last Week:
Sell   Company   Sell     Buy       Buy
Date    Sold        Price   Price     Date
-----  ---------   -------  -------  ------------
7/15   AAPL     $43.00   $399.00    6/26/2013

Here are my Option (CALL or PUT) Sells for Last Week:
I only do Covered CALLs or Cash Secured PUTs
Option  Sell    Stock    Strike   Expiration   Option  
Type    Date   Symbol  Price      Date         Price    
------  ------  --------  ------  ----------  --------
None

StockEvaluator and Mutual FundEvaluator spreadsheets are available for download at www.ultimatestockfinder.com

Remember to send me any other stocks or mutual funds that you would like to see added to the Evaluator spreadsheets, and any other investing ideas, information or questions that you want to share.

Thanks,
John D.
______________________________________________

Visit Our Website UltimateStockFinder.com for More Investing Ideas:
At "Stock Evaluator", download various pre-sorted views of this week's StockEvaluator spreadsheet.  All the financial data is refreshed on Friday night into StockEvaluator which contains over 2,400 company stocks.  We will add any company you would like to the list. Download "StockEvaluator spreadsheet" at: http://www.ultimatestockfinder.com/ 
Also, you can sign in and view the Ultimate Stock Finder watchlist on Yahoo Finance

At “Mutual Fund Evaluator” download this weeks MutualFundEvaluator spreadsheet.
MutualFundEvaluator is also updated weekly and currently contains over 700 mutual funds.

Run the various Ctrl-_ sort commands in StockEvaluator and MutualFundEvaluator to bring the best companies to the top based on their key financial values. 

Also, View our YouTube training videos to learn how to use StockEvaluator and MutualFundEvaluator.

At "Training" read more information on how we do our investments.
   “Training Module 1 - Why Use StockEvaluator.xls  And How to Use It”
   "How We Use PUTs and CALLs to Minimize Risk and Increase Profit on Each Buy & Sell"
   "S&P 500 Total Return Comparison" spreadsheet for 25 year comparisons of many funds
   "Compare Annuity Returns, Expenses and Death Benefit v.s. Managing it Yourself"

At "Links" you can find our favorite links for good investing information including:
   Screener for New 52 week lows
   Screener for Good Fundamental Values
   Screener for Stocks with High Volatility
   Links that show current P/E values for the major worldwide indexes. 
   Current Prices and 52 week ranges for major commodities

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