Thursday, December 30, 2010

12/29/10 - 2010 Dow Dogs - BA, CVX, DD, KFT, MCD, MRK, PFE, SPY, T & VZ

12/29/10 - 2010 Dow Dogs - BA, CVX, DD, KFT, MCD, MRK, PFE, SPY, T & VZ




The following analysis was performed on 12/29/10 using closing market pricing.
The VIX was at 17.28 and the S&P 500 Index was at 1,259.78.
Symbol Name

BA Boeing Company - #1 of the group based on our analysis. RVI's amd P/E's are low, the dividend is high - what is not to like?

CVX Chevron Corp. - High RVI's and low ranking in the group. P/E's are low and no doubt the stock would do well in another group

DD E.I. Du Pont de Nemours - #3 of this group. High RVI's and low P/E's. Rising markets challenge our beliefs do they not? Overall the bottom of this group.

HD Home Depot, Inc - RVI's are high, sort of and P/E's are highish....
KFT Kraft Foods Inc. $ 4 of this group.

MCD McDonald's Corp - #9 of the group, wide range of RVI's, the stock looks rich from a Buy/Write prospective.

MRK Merk & Co, Inc - RVI's are mid! What a surprise and P/E's are good. Second to the bottom of this group from our analysis. As much as we can like the stock it just does not stand out in this group.

PFE Pfizer, Inc - RVI's are mid - must be a pharma thing. The P/E is too high but the forward is reasonable (that's why we use it).

SPY S&P Standard & Poor''s Depository Receipt - All the Beta you can ask for here. We do take SPY positions in our risk accounts. It has proven to be an inexpensive way to "own" the market.

T AT&T - #2 of this group. High RVI's and in a difficult to understand industry. We have written about communications and our concerns and the potential opportunities. We looked at T and VZ but what about Sprint? This has dominated some of our recent discussions. Who will Sprint customers be paying their bills to this time next year? They look like a buy out candidate.

VZ Verizon Communications Inc - # 7 of this group. RVI's, P/E's are all high as are the Days earning.


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As with everything we post, we may or may not have the stock and/or strategy in place in any one of our portfolios or may add it at any time. We do not make any buy or sell recommendations. We provide basic analytical research, some short commentary of the results and encourage you to do your own thorough due diligence prior to any purchase or sale.










































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