Super Stock Blog

Let's make our own bull run!

Month: June 2015

Wal-Mart is a Bargain Right Now!!

How did I miss this stock?  We get so busy looking at our portfolio that we miss these opportunities.  Well, it just so happens that I was viewing the tweets on StockTwits and someone mentioned that Facebook (FB) has taken a higher market value than Wal-Mart (WMT).  They put the stock chart side-by-side and my surprise was seeing that Wal-Mart has dropped rapidly the past 3 months.

Ok, so yes, Facebook (FB) has higher marketshare and it definitely can keep moving up higher.  However, we need to have some conservative stocks that will also continue to do well for the long-term.  Wal-Mart is the answer to the conservation stock picker that wants to get long-term growth, appreciation, and a steady winner.

Why Wal-Mart?

Fundamentals are really good for Wal-Mart.  It currently trades at a PE of 14.7.  Compare that to its competitors Target that is running at a PE of 20.5 and you have a winner of a stock that is under-valued, under-appreciated, and you know it won’t last forever.  You also get to collect a nice 2.7% dividend for owning WMT.

Can it go down further?

Of course the stock can go down further, no one holds a crystal ball.  However, I’m sure big companies like Berkshire Hathaway know what they are doing when almost 5% of their portfolio is invested in Wal-Mart.

Tread Lightly with Twitter

The Twitter CEO recently stepped down. The interim founder Jack Dorsey has come in to replace in the mean time. The stock market has not been happy with this strategy. There is still potential for Twitter (TWTR) but it will take longer than expected to see the value. This is turning to more of a long-term value stock.

Ocwen Steady Climber Up

Technically, Ocwen is looking bullish.  It has shown a nice bottoming pattern and a nice slow step back up finally.  This is after a huge drop at the end of 2014 from $58 to $6.  YTD that is a huge drop of 70.9% and YTD drop of 32.1%.  Even with these poor technical formations, there has been widespread activity purchasing the stock.

Seth Klarman has been buying since 3rd quarter of 2014.  He was buying when the stock was averaging $30.  He also bought 4th quarter 2014 and 1st quarter of 2015.  He’s continues to accumulate as it goes down in price.  This is a true value investment and I have to believe when a guru like Seth is putting millions of his money and having this stock as a majority in his portfolio that he really believes it will do well in the future.