Tuesday, January 5, 2010

Airlines fly high, IBM looking good

As I pointed out a few days ago, you buy airlines on bad news.  Sell when they start to discount. I hope some of you bought some last week when they were weak due to the security scare.  Well guess what they raised fares and the stock prices rose by 10% Plus today on the ones I recommended.  You may have missed a great opportunity, but all is not lost.  Buy on dips going forward and reap some good returns.  
IBM pulled back today, but they are scheduled to report fourth quarter earnings on the 19th of Jan.  They beat third quarter by a penny or so and I expect even with the huge earnings number estimated for the fourth quarter they will beat that as well.  I am looking for a price target of at least 135 by mid March.  Tomorrow may be a great buying opportunity for this bluest of blue chips.

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