Tuesday, October 2, 2012

Watch List-October

My job gives me a Bloomberg terminal - complete with a whole monitor dedicated to watching each and every tick during the stock market trading day. While I can't buy any stocks our funds would buy, there is still a lot of the world available to me. Lately I've been eyeing INTC, RRGB, and MSFT.

INTC: Intel makes products that almost everybody uses every day. I don't see somebody else unseating them from this position - they would likely acquire the company before it got too successful. With a 4% dividend yield, a solid history of growth, and a ~10x P/E ratio what more do you need to know? That's about all the work I do for companies like this. I'm looking to buy below $22.

MSFT: Similar story to Intel. The company makes essential software. Their XBOX console is becoming more of a standalone segment, and if Windows Phone takes off like Android watch out! The stock price hasn't moved for a decade - widely panned by the press - but carries a very low P/E and solid dividend yield. I would be willing to bet that if Steve Ballmer leaves the stock would jump. I'm looking to buy MSFT below $28.

RRGB: You've seen the commercials. "Red Robin....YUMMMMMMM!" They make gourmet burgers and carry a wide variety of beers. The place is jam-packed on the weekend with kids' sports teams, families, and burger afficionados. To my mind, the prices are perfect and the product is great. My wife and I can eat there (2 burgers, giant beers, and appetizer) for about $30. I owned this stock from $17 to $38 and am hoping to buy again below $30.

What's on your watchlist these days?

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