First, I went through the list of stocks which I'd recently recommended, which were currently near good buy prices. Those included GD, WLP, JNJ, KFT, PRU, C, MCD, YHOO and AMAT. Then I reviewed their charts and dividends, to see which looked better than the others today. Those included PRU, KFT, WLP, YHOO, and GD.
Next I reviewed the industries in which I'm already invested. I'm overweighted in technology (computers, software, telecom) and consumer staples (cigarettes, toilet paper), and strong in finance (banking, credit cards), so I eliminated Prudential (PRU -- insurance), Yahoo! (YHOO -- online media/technology), and Kraft (KFT -- packaged foods).
I was left with Wellpoint (WLP -- health insurance) and General Dynamics (GD -- aviations; weapons). I chose Wellpoint over Prudential in the insurance category because Wellpoint looks like I can make a bigger percentage gain. They each pay decent dividends (WLP 1.5% and GD 2.2%). Those are the two stocks I purchased today.
I expect to sell Wellpoint near $90 and General Dynamics near $91, and I'll use stop loss orders to protect me on the downside. I do not fall in love with stocks and keep them forever. I invest to make money, then sell the stocks and move on to other stock opportunities. If stocks went up consistently, I'd keep them long-term. But stocks move in fits and starts, sometimes throwing more fits than an investor has the stomach for. I simply want to catch an upswing over the next few months, and make money.
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I am not paid to promote nor disparage any investment. My recommendations are based on hypothetical situations of what I would do, not advice on what you should do. The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Investments are risky, and can go down in value. Past investment results are not indicative of future returns. I am not a licensed investment advisor nor a tax advisor. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment. This is not a solicitation to buy or sell any security.
The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.