Stock Idea: Prudential Financial Inc. (PRU, $63.54)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Prudential Financial Inc. (PRU) is a financial services company, offering insurance, investments and real estate on four continents. Consensus earnings per share (eps) growth is projected at 7.4% and 18.3% for the fiscal years 2011 and 2012. The PE is very low at 7.0 and the dividend is $1.15 per share, which yields 1.81%.

PRU shares topped $100 in 2007, prior to the financial meltdown of 2008, at which point the shares plummeted below $20. Whew! The stock has been recovering in a relatively orderly fashion. The stock looks like it's wrapping up a recent trading range of $52 to $66, and poised to move higher, with the next price resistance around $72. Investors who seek to earn 10% to 25% in less than a year might fare well with shares in Prudential Financial.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Walt Disney Co. Reports Earnings After the Close (DIS, $41.18)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Walt Disney Co. (DIS)

Disney's quarterly earnings were reported after the close today. The earnings per share (eps) of $0.68 blew away the consensus estimate of $0.56.

"We had an excellent first quarter, driven by strong creative content and our unique ability to leverage great entertainment across the many platforms, businesses and markets in which we operate," said Robert A. Iger, President and CEO. "With net income up 54%, it's a great start to a new fiscal year." -- Business Wire

I wrote about Disney on Feb. 2, at which point I said that it had broken out of a long-term trading range and was advancing higher. I believe there is still room for stock traders to buy the stock and be pleased with this year's performance. My general goal is to make 10-25% total return on a stock in much less than a year's time. (see disclaimer!)

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: Philip Morris International Inc. (PM, $59.00)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Philip Morris (PM) -- Take a deep breath....today we're discussing a tobacco stock. Gasp! (Or should I say, "cough, cough!") For me, investing is about making money. And while I work on "saving the world" every day, I don't do it with my investments.

What's so great about Philip Morris? Okay, have you travelled much? Everybody smokes cigarettes, everywhere in the world, except in America, or maybe just "except in Colorado", where I live, where people are wildly athletic and more slender than our fellow Americans. Can you say "captive market?" In fact, Philip Morris sells tobacco products in 160 countries.

The financials look marvelous and so does the stock chart. Earnings per share are projected to grow at a compounded annual rate of 14% for the fiscal years 2011 through 2013, which is a consensus estimate based on projections by 15 investment firms. The dividend of $2.56 per share yields 4.34%, which means investors get paid as if they owned a bond while they wait for the stock price to go up. There's a PE of 15.7 and a beta of 0.8.

The stock price has just begun to reach new highs. (Don't worry too much, new highs can be a wonderful thing. There's nobody who owned this stock at a higher price and is itching to sell the moment it reaches the price they bought it at. Those people drive the price back down. Those people do not exist with Philip Morris stock!)

The stock has recently been trading in the $56 to $61 area, and while it would be really nice to buy at $57.50 or less, there's a lot to be said for buying a big dividend stock and having a little patience. I think patience with Philip Morris can be rewarded this year.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Investing: The Relative Importance of Price Per Share

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Does the price of a share of stock indicate its upside potential? Can I make more money on a $12 stock than I can on a $56 stock?

These questions cannot be answered in a vacuum, so let's look at contributing factors. First of all, stocks do not go up and down because of pricepoint. Stocks go up and down because investors either like the prospects of a company, then buy the stock, thus driving the price up; or they dislike the company's outlook, and sell the stock, thus driving the price down. In basic economic terms, these actions are referred to as "supply and demand".

While there are investors who buy modest numbers of shares in low-priced stocks, the larger number of shares traded each day are bought and sold by investment firms, mutual funds and other entities which would never make these decisions based on share price alone. They look at the "fundamentals", meaning sales, profit, debt, products, competitors and the like, or "technical indicators", meaning price charts, volume of shares traded, etc., neither of which has anything to do with whether the stock costs $12 or $56.

So the big thing we glean here is that if professional investment companies are not making their decisions based on the price of the stock, neither should you, the novice.

If we have two companies with the same exact sales and profit and products and future outlook, essentially, if all factors are equal, then the lower priced stock will be more of a bargain and have more profit potential for the investor. But the reality is that when you look at the earnings per share of a $12 stock, the number is often negative or below $1.00 per share, while the earnings per share of a $56 stock might be $3 or $4 or $5.

Earnings per share, a.k.a. "eps" is a number which helps you compare apples to apples. This number takes the company's annual net profit and divides it by the number of shares of stock which are outstanding. Generally speaking, a stock with an eps of $4.25 is going to command a much higher stock price than a stock with an eps of $0.63.

An even easier way to look at the stock price and the earnings per share and make a guess as to whether you're getting a good value for your money is to look at the price/earnings ratio, a.k.a. "PE". A $15 stock with an eps of $0.50 has a PE of 30. A $40 stock with an eps of $4.00 has a PE of 10. Generally speaking, a lower PE indicates lower risk to the share price. So you're really not comparing a $15 stock to a $40 stock in this scenario. What you're comparing is a stock with a high PE of 30 to a stock with a low PE of 10.

There is so much more to discuss and learn, but this is a brief lesson with a moral: "Professional investors do not make it a goal to buy low-priced stocks, and neither should you. Learn more about the balance sheet data which attracts professional investors, and try to buy stocks with similar attractive qualities. In doing so, you will lower your risk that the stock price will plummet, or simply fail to rise."

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FYI -- The lowest-priced stock I own right now is Fifth Third Bancorp (FITB) with a price of $15.39, projected 2011 eps of $1.15, and a PE of 13.4. The highest-priced stock I own right now is United Parcel Service (UPS) with a price of $74.34, projected 2011 eps of $4.25, and a PE of 17.5.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: M&T Bank Corp. (MTB, $86.70)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

M&T Bank Corp (MTB) is a commercial, business, retail, real estate and mortgage banker, operating branches in NY, DE, PA, NJ, MD, VA, WV and the District of Columbia.

Consensus earnings per share growth for the 2011-2013 time period is projected at 7.6%, 21.7% and 10.7%; with a price-to-earnings ratio of 15. M&T Bank Corp. stock pays a dividend of $2.80 per share, which yields 3.23% per share.

MTB's stock price is recovering from the stock market crash during the financial meltdown in 2008. It has recently traded in the $75-$90 range, and looks poised to launch upward from there soon, barring any unexpected corporate or stock market problems. (I do not expect it to bounce back down to $75 again, and I would be a buyer at the current price.) MTB stock's next upswing should meet resistance around $100 per share. Longer-term holders of the stock might be rewarded with a return to the '06-'07 high of about $122.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: Johnson & Johnson (JNJ, $60.62)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Johnson & Johnson (JNJ) produces and markets healthcare products throughout the world. The PE is 12.6, the beta is .7, the dividend is $2.16 per share and yields 3.56%. Projected consensus eps growth is 1.7%, 5.8% and 9.4% for the fiscal years 2011 through 2013.

The stock is likely to trade $60 to $64 in the near-term, with the next move likely being up to $66. I would buy this stock if I wanted a blue chip stock with a good dividend, but the growth will not be exciting, just slow and steady. If I've owned it for a while and I'm getting antsy, I'd sell at $64 and move on.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: WellPoint (WLP, $64.48)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

WellPoint (WLP) is a health benefits company serving over 30 million medical members. Earnings per share are projected to fall slightly in 2011 by 2.7% to $6.56 per share, then increase in the next two fiscal years by 11.0% and 8.1%. The PE is quite low at 9.0. Is there room for the PE to expand now that a Federal judge declared that citizens' mandatory purchases of Obamacare is unconstitutional, and there is less risk that Obamacare will put medical insurance companies out of business? I would think so.

The stock price looks like it's ready to rise above the recent $48-$65 range, possibly retracing its former high of $90 before the stock fell with the financial meltdown of 2008.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: Walt Disney CO. (DIS, $39.88)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Walt Disney Co. (DIS) is still growing at an attractive rate, with projected consensus eps increasing 18.4%, 15.1% and 12.8% in the years 2011 through 2013. The dividend of 40 cents per share represents a modest yield of 1.00%. The PE is 19.74 and the beta is 1.07.

The stock price has traded between $15 and $35 repeatedly over the last ten years, and has just recently broken out of that trading range. I bought DIS shares recently at $38.50, and hope to earn a 10-25% return on my investment this year.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Update on United Parcel Service Inc. (UPS)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

The Stock Idea on UPS (below) was originally posted herein on January 27. Click the link for today's excellent earnings report.


United Parcel Service (UPS) pays an annual dividend of $1.88, which yields 2.58% based on a current stock price of $72.87. The beta is .91. The PE is high at 23.43. Projected 2010 earnings per share are $3.53, and eps growth for 2011 and 2012 has consensus projections of 18.4% and 15.3%.

The stock is just now rebounding up to a former trading range of approximately $68 - $85, where it stayed in 2003 through 2008, prior to the financial meltdown of 2008. I bought the stock recently at $72.80, and I have a sell order in at $84. I would expect it to stay in this former trading range for quite a while, and this presents a good opportunity to buy and sell several times.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: Air Products and Chemicals Inc. (APD, $85.77)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Air Products and Chemicals Inc. (APD) "serves technology, energy, industrial, and healthcare customers globally with products, services, and solutions that include atmospheric gases, process and specialty gases, performance materials, equipment, and services. The Company is a supplier of hydrogen and helium...." -- Morgan Stanley research, January 2011.

APD's earnings per share (eps) are expected to rise 13.3%, 11.2%, and 6.5% in 2011 through 2013. The PE is 18, the dividend yield is 2.27% and the beta is 1.19.

APD stock is recovering nicely from the 2008 Financial Meltdown, when stocks dropped precipitously. Watch for the stock to trade between $82 and $102 this year, barring any unexpected bad news.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stocks to Buy in the Face of Market Weakness

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

American stock markets went down today, not dramatically, but enough that people pause and wonder what to do. Keep in mind that stock market averages have trading ranges, advances and declines, just like individual stocks do. Today, American stock markets experienced a down day in an upward cycle.

Stocks which I've reviewed herein during the last week which look attractive at today's prices and strong enough to easily perform well in the near-term include Nordstrom (JWN), General Electric (GE) and Fifth Third Bancorp (FITB).

Scroll down and read the reviews of those companies. Send me questions if you like, and I'll be happy to not "publish" your comments if you ask me not to. Or find me on Facebook or Twitter and talk about your stock market ideas and concerns.

Have a good weekend!

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: Nordstrom Inc. (JWN, $41.96)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Nordstrom Inc. (JWN) is a specialty fashion retailer which sells merchandise through retail stores and online; manufactures private label clothing; owns a bank and offers credit and debit cards. The stock dividend is 80 cents per share and yields 1.91%.

A consensus of earnings estimates from 22 investment firms shows that earnings per share are expected to increase 39.2%, 13.3% and 11.8% in the years 2011 through 2013.

If the stock price continues its current rise toward the former high of about $58., investors could earn a 35% return. I bought the stock recently at $40.50, and plan to sell around $56. (I never try to get every penny of profit out of a stock trade. I just sell when it's close to my target and move on to another attractive stock.)

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: AT&T Inc. (T, $28.13)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

AT&T, Inc. (T) is a worldwide telecommunications conglomerate. AT&T continues to experience modest year-over-year earnings growth, and is expected to do so through 2011 and 2012. The dividend yield is 6.11%, the PE is 7.7, and the beta is 0.61. This is an incredible value stock which could attract stock traders, income investors, and value stock investors.

AT&T reported fourth quarter earnings today. Despite new competition in the I-Phone market, AT&T is expected to maintain the lion's share of that market for quite some time, and the company has additional business divisions which contribute to its overall annual earnings growth.

The stock is likely to trade in the $28-$30 area in the near term, with the next move likely being a rise to $35/$36. I wouldn't hesitate to buy AT&T immediately for a good trading opportunity.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: United Parcel Service Inc. (UPS, $72.87)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

United Parcel Service (UPS) pays an annual dividend of $1.88, which yields 2.58% based on a current stock price of $72.87. The beta is .91. The PE is high at 23.43. Projected 2010 earnings per share are $3.53, and eps growth for 2011 and 2012 has consensus projections of 18.4% and 15.3%.

The stock is just now rebounding up to a former trading range of approximately $68 - $85, where it stayed in 2003 through 2008, prior to the financial meltdown of 2008. I bought the stock recently at $72.80, and I have a sell order in at $84. I would expect it to stay in this former trading range for quite a while, and this presents a good opportunity to buy and sell several times.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: General Dynamics (GD, $74.77)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

General Dynamics (GD) is in the businesses of aviation, shipbuilding, weapons & combat, and information & technology.

GD has a dividend of $1.68, which yields 2.25%; and a PE of 11. Consensus earnings are projected to increase 5.0% and 7.3% in 2011 and 2012.

GD stock fell from approx. $93 to $37 during the financial meltdown, recovered to a trading range in the $57-$77 area, and now looks poised to climb from there. GD stock could provide a good medium-term return of up to 21%. From a trader's point of view, if I owned this stock, I would definitely sell at 91.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: The Coca-Cola Company (KO, $62.96)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Coca-Cola (KO) stock has spent the last ten years trading roughly between $40 and $60 dollars per share, and it is just now showing signs that it's ready to break out from that trading range. I would buy KO today. The dividend is $1.76 per share, which represents a yield of 2.80%. Consensus earnings growth for 2011 and 2012 is project at 10.3% and 10.1%. The PE is 19.31 and the beta is quite low at 0.59.

(Many stocks have made no significant advances in the recent decade. Four major hits came to U.S. stock markets during that time: the Sept. 11 terrorist attack, the ensuing recession, the 2008 financial crisis, and its ensuing recession. These events cost American companies lots of money; many were financially devastated, e.g. real estate and financial companies; and some even closed for business, e.g. Bear Stearns.)

KO looks like it will trade in the low $60's in the near-term (approximately $62.50-$65.50), and I expect the next move to be up. I expect that both short-term investors and medium-term investors could be happy with KO's investment returns. Read about the company at http://www.thecoca-colacompany.com/.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.

Stock Idea: DeVry Inc. (DV, $47.38)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

DeVry Inc. is an educational services company, serving students in middle school through post-secondary education.

DV has a low PE, a low beta, and a tiny dividend. Earnings are projected to rise 15.8%, 6.9% and 11.0% respectively for 2010, 2011 and 2012.

DV stock has traded between $39 and $70 in the last year. As a stock trader, I would be a buyer of the stock below $44 and would sell at $60.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow 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.

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.TheRightHuff.blogspot.com and me, Crista Huff, harmless and to completely release www.TheRightHuff.blogspot.com and Crista Huff from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

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.