Super Stock Blog

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Tag: hd

Cash is King. Easing off HABT.

I mentioned Habit (HABT) as being a nice buy-and-hold.  It was making a nice run until the last quarterly report which took the stock for a nose dive.  I still believe this will be a nice stock in the long-term but there are many factors that are causing this stock to not be as nice investment for the short-term that has caused me to get rid of it in my stock portfolio.

First, the quarterly report was rather bearish on the guidance.  It was stated to be much lower than expected.  The minimum wage rising per hour will also cause more disruption for the revenues.

Second, regarding the market, Lowes (LOW) recently had a bearish outlook to their guidance.  If you look at Home Depot (HD) and Lowes (LOW), technically, there stock price is trending downward.  Remember in the last recession, these were leading indicators that eventually led to the recession.

Again, use your own due diligence, but in the point in the market, I rather be more conservative and wait to invest during the downturn.  I was heavily invested before the last recession which meant I did take many losses as other investors did.  I rather have some reserves this time to get bargains during the next downturn.

Invest in Strong Companies and Do Will

As investors, we always want to find something that is under the radar.  We want something that hasn’t been priced high yet.  We want to be able to get the stock before it takes off.  Remember when you are doing this you are competing with investment firms and professional stock traders that have a limitless amount of tools at their exposure and they do this full time.  If you wish to make consistent returns, it is best to stick with strong names that will do well for the long-term.

One high-flyer that has continued to go up is Micron (MU).  This stock has continued to run up well and even with the past dip it has already started moving up again.  It is worth taking a look at.  I couple other good names to look at include IBM and Home Depot (HD).