Going Financial

For a couple of years now I have looked at Technologystocks as a series of reasonable investments. Apple (AAPL) proved pretty successful, Qualcomm (QCOM) was ok I got in and out with a little profit and finally I held some Microsoft (MSFT).

Microsoft was actually a reasonable performer over the last three years I built a good holding but lately it was a little lack lustre. So looking around I decided to Sell out of my last stock in a Tech company. So I needed somewhere to park the cash for a while.

I have mentyioned my previous almost disastrous holding of Bank of America (BAC) I began investing there in 2006 for the then dividend of 50 cents per share. The investment at that time left me with average buying prices in the $50 region.. A lot of cash was tied up in an almost worthless stock a couple of years ago.

I began buying additional stock in BAC at the $5 level and this brought my averages down to the $20 then as I bought more the average has come down past $15.

Well I decided to park the Microsoft cash in Bank of America. This actuall doubled my holding and has left me with an average purchase price at just above $14.

I think this is a reasonable level to be able to take a chance at getting some of my cash back. BAC could even reach #14 by the end of this year if we only assume a 15% increase in its price. I think it can do that easily.

From there as I call back my cash I am considering buying into a Tech ETF such as the SPDR Technology ETF (XLK). Technology is getting to be a tough call with all the global corporations fighting for market share. I could not call Apple (AAPL) or Samsung, Microsoft or Apple. Qualcomm or Samsung or Intel. A tech ETF will give me a more widespread risk on an important area for my portfolio.

Intil then. I am out of Tech and going Financial.

Bloomberg TV or CNBC?

As an investor information is important to me.

But where to turn for good information  that is a big question.

For me the answer actually came in hospital in the Fall of 2012.  I did not have my phone with me, nor did I have a watch so telling the time was difficult. Regular stations on the TV do not give regular time updates and skimming the stations one day I came across Bloomberg TV.

Not only did they tell me the time every half hour or so but I found their news coverage of the markets more interesting than my usual fare on CNBC.

Bloomberg though it does sometimes seem to focus upon its own magazine editorials reported items in a less catastrophic way.  CNBC often tended to the "sky is falling, sell now" style of reporting.

CNBC reports are also full of  "tips". " buy tjis now" "sell this immediately." Bloomberg has less of this kind of reporting.

One particular item that took my eye last year was a five part piece, a series of reports which showed operations on the Union Pacific Railroad (UNP) There was some financial news on the company but, for a train lover, lots of great footage of the reporter riding the trains, interviewing the rolling stock managers in marshalling yards. OK fun stuff, but also valuable information if the rolling stock manager tells you that they are moving X amount of goods more this quarter over the last years movement. You learn alot watching trains.

CNBC is tied to the studio and reporters seem to drive for the tip without any back-up for the investor to gain crucial information.

For me now Bloomberg TV is the main source of information on a daily basis.

You can also log into Bloomberg TV through the iPhone and iPad app available at the Apple Appstore

Of Falling Knives. Missed Boats and Markets

There is an old saying that investors should bear in mind; "Never catch a falling knife."

OK so much for the knives in this post. Be sure they will cut you and can cut your profits.

But what do investors do when markets rise so far that things get dizzy and there looks to be a fall, or as the professionals call it 'a correction.'

We should be sitting tight, waiting for the knife, erm stock market to drop.

Riight now we are in a falling market. I am sitting tight on some orders right now. I and you want to maximize our profits and things are looking good for us to buy in on this correction.

Some good stocks are getting reasonable pricings.

I stated in an earlier post that Apple Inc is going to be a buy for me below $550. that holds true not matter what the results posted this week say. Unless they are totally disasterous.

Another interesting falling stock today is Walmart (WMT) the have been accused of paying bribes to Mexican authorities, in order to open stores. So on that news their stock is falling. The bad news is an excellent opportunity to buy in stock. I am an owner of WalMart (WMT) and this fall is an opportunity  to top up on a few less expensive stocks as the initial panic stops and the stock regains its basic confidence.
The trick now is to pick the stocks you like on fundamental levels, good stocks, good profit stream, lots of strong cash flow and set a level where you like a company. Buy in at those levels or cheaper and keep buying until the stock rises then follow it up.

It is easy to say but hard to do.  Buy in as market and stocks reach you value levels not those of a TV or press pundit. If you wait for the good news, you'll be waiting too long and miss the boat.

This 'correction' is a boat you should look to catch, even the correction of 2007-8 was no Titanic for those who bought in on the down turn.

What May Be Good for APPL May be Good for T

With Apple trading at over $600  per share that may be a little out of the average investors range.

Where might you go to follow their success?

Possibly look to AT&T (T) trading in the low $30's AT&T have had some good dividends and have a long standing contract to serve Apple's iPad customers with wireless service.

Disclosure:The Author holds  AT&T (T) Stock in his portfolio.

AT&T has recently looked to increase income by slowly raising it's data prices, this has been coupled with investment to expand current networks and it seems that as fast as they expand the pipeline for wireless users the pipeline fills and data usage increases to fill available capacity.

AT&T has coped well with the demand and I believe that they will continue to look to serve the Apple users within their contracts successfully maintaining their market share as other carriers come into the market in order to compete.

AT&T therefore could be a medium term play for those looking to gain from iPad sales without the risk of having a very major portion of their portfolio in Apple (APPL)


Thoughts on Apple Inc.