Thursday, January 14, 2010

It's All About Intel, and Then JPM

The market has been extremely quiet the past few days.  Volume and volatility have been low as investors are waiting for the next catalyst.  Never fear, however, as earnings season has arrived.  Alcoa disappointed, but the market shook that off easily.  Now, we're looking to Intel after the close today, and JPMorgan tomorrow morning.  In the past two cycles, Intel in particular was of high importance.  So, we wait.

Health care stocks, and particularly big pharma, has been rocking.  Portfolio holding Pfizer has gained about 5% this week, and its one of the few mega-cap names I really like right now. 

Sticking with health care, I also really like Carefusion (CFN), and almost added to my position a few times this week.  There will be some good opportunities to add soon (I'm hoping). 

I still would love to establish a large position in Loews (L).  They have an awesome management team and a great group of businesses.  They provide us exposure to a lot of industries I like at the present (offshore drilling, natural gas, luxury hotels, to name a few).  The stock is still trading below book value.  They figure to earn $4.00/share this year.  At a 15x multiple, that puts them at $60.  You can buy shares today for $37.90.

The market could get moving again following Intel's report.  To be honest, I'd love to see a bit of a pullback.  I do feel the recovery will be slow, but we're still burning the stimulus fuel, and until there is a better alternative than stocks and we don't see any shocks to the system, things should be good.

Disclosure: Long PFE, CFN,

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