Buy the company not the market

In December, I make a statement about airlines flying high and suggested buying on dips.  Well, I took my own advise and after watching American, Jet Blue, and U S Air raise rates again, it was time to jump in.  The result, even though the stock market has been languishing in uncertainty, has been amazing.  I bought on February 1st and as of February 12, the growth of my investments thus far:  American Air lines up 21.14%, Jet Blue up 1.79% and US Air up 22.93%.  Those are not annualized returns, they represent just 2 weeks.

I had also said that Alcoa was going to be a winner.  And it will be Buying at current levels is something I am looking very closely at.  

I had predicted that jobs would grow in January, well I missed that one by just 22,000 jobs.  Okay I will take a hit on that one, but I think I missed it just by a month.  Watch for February it should be the turning point.  

Also, just in case you missed it.  Ford Motors is about to break to the upside again.  My target is 15 plus per share.  I think by the end of 2011 they will even reinstate a dividend.

American Tel and Tel is being held back right now by the ongoing directed competition with Verizon, I still like the stock and love the dividend.

Meanwhile CD rates still are sucking wind.  Look to local credit unions for one year rates of 2:00%.  Rates should start up during the second half of the year.

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.

Airline Stocks still a buy

Buy on bad new, sell on good.  Airline stocks are still a buy and you can get them now cheaper than last week.  AA, LOV(southwest), jet blue and alaska air still have a way to go.  I expect each to make money in 2010.  You can buy them until you see the first sign of discounting or fair reduction, then take your money and run.