I'm Back! - and buy Clorox

Sorry for the extended inactivity on Bull's Eye Market. I have been very busy. What is their to post in this bear market anyway!

I would like to come back with a suggestion: buy Clorox at 65. I will explain my suggestion in a separate post.

What? How could you tell us to buy in this possible double-dip recession?

Primarily, I would like to give my two cents about the market. First of all, you can not say a double-dip will happen because our current economy and market is similar to that of the 2008 recession. Many of the numbers are different. Just as examples, EPS growth, oil price, sales growth.

As per the downgrade of the S&P, Washington had a choice: $4T in cuts or downgrade. They chose the downgrade. This, to them, was better than the $4T in cuts. The downgrade was not a surprise to Washington, they chose their own fate. They must know how to deal with the repercussion.

Of course, a double-dip is very much a possibility. However, I don't recommend selling unless you can't hold up your money in the market for a year. Let's learn from the past. The market will always recover. Because a double-dip is anything but certain, hold. If anything, sell 15-25% of your assets.

I will also recommend you to buy, very conservatively, on Monday when you feel the market's at a low. Now, I understand what I am saying, and how hypocritical I must seem. Allow me to explain. If the double-dip doesn't happen, the market's at a huge bargain right now. The S&P is trading 12 times the estimated 2011 profits. So, get in on this bargain, but buy very conservatively.

Now, if the market does crash, wait for a good time to buy. Don't catch the axe while it's falling. If you can manage to buy aggressively when the markets down, or buy in increments while the market is falling, you are in for a huge upside after the recession.

I understand the fear of a recession. Do not succumb to fear, learn from the past. As long as you can have your money tied up, hold your positions or sell a very small portion. Buy very moderately on Monday, and incrementally as the market falls (if it falls). Hit That Bull's Eye!

Bull's Eye Market Up 52.63% Since Creation in December '10!

My Bull's Eyes have raked in an incredible 52.63% upside. Express leads these gains with a 19.59% increase. Thanks for all the support, and please continue to share the blog. I would like to see even more readers benefit!
To see the details of this performance, click here.

Best Bargain After Japan Crisis – Hitachi

What has happened in Japan recently is truly devastating. I urge you to do your best to donate and help those in need.

Because of the recent crisis, many Japanese companies have lowered to bargain prices. Japan will rebound, that is definite; the question is, when? Regardless of when the Japanese market rebounds, it is not likely to dip much more than it already has. From the companies whose prices have dropped, I find Hitachi to be the best bargain. I am not saying to buy the company on sound fundamentals; in fact, lots of things go against the debate to buy Hitachi. For example, it often falls to its numerous competitors. In addition, it has been in loss for the last four years (money.cnn.com). However, the stock has dropped to 49, and with a 5.49 EPS, the P/E comes out to about 9. The stock has fallen more than 10 percent, with a price around 60 at the beginning of March. I recommend putting a limit order of 49.30 (don’t get too greedy and miss the opportunity!). Hit That Bull’s Eye!

Bull's Eye Market Performance Update

My recommendations are up 32.3% in less than 4 months! For details on each recommendation and its individual performance, click the performance updates tab or click here. Thank you all for your support, and please share the blog with others who may be interested. After all, who can't use a couple extra bucks?

Update Buffalo Wild Wings (BWLD)

I take the same stand on Buffalo Wild Wings that I had taken when I first recommended it. Nothing has changed – no significant bad news has come. I expect higher earnings due to the current NCAA basketball tournament that has been going on and the company seems like it will prosper in the coming years. I am keeping my target at 75 within 5 years.

Update Dr Pepper Snapple Group (DPS)

I am still a fan of Dr Pepper Snapple Group’s stock. They offer a decent dividend with a moderate potential upside. I am raising my target to 43 from 39. This is because of the quick upward trend the stock has had after its dip near 34. I want this stock to be held for some time to reap the benefits from the dividend and the stock may hit 39 within the next week or two. Do not sell this stock; hold it for a couple of years at least. It will rise and that dividend is just another good source of income you do not want to let go.

Update Citigroup (C)

Citigroup has given many investors a scare. Citigroup announced that it will have a reverse 10-1 stock split. This could be because the company sees a falling stock price, and doesn’t want the stock to reflect an even lower price than what it is at. This is to be in effect sometime in May. The company had also announced a 1 cent dividend to be effective at the same time as the split, rendering a pitiful 0.03% yield. But hey, it’s a start! Now many people have been frightened by the reverse stock split. I do agree that this action could foreshadow a falling stock price. I also believe that the stock will remain below 5, or 50 after the reverse split, until after June of this year. But after that, the reverse split could actually attract some investors. Many people ignore this bank stock as it is at such a low price. With a higher stock price, it suddenly seems to be a more fundamentally bound stock. More investors may be comfortable investing in the stock as it is not at such a low price. This should negate some of the downward effect of that the reverse split has brought. I still say buy the stock, it should multiply several times over in the long-term; this is just a little bump that should only scare short-term traders.