Sunday, January 19, 2014

The naive believe everything, but a wise man looks well into a matter ...part 2

The progress of reviewing the Cramer stocks has been slow. That is fine and I will continue to do this as time allows. I have been buying some of the Cramer picks, but only with partial positions.

Cramer’s list of stock to own:

Cramer’s list of companies that he considered to be well managed:

Here are notes from the continues review:

Bank of America

Bank of America is a holding company with banking and financial service in the US and over 46 foreign countries around the world. But there are a lot of banks, so why this one? Likely its Cramer’s choice as its price still has more recovery than Wells Fargo or JP Morgan. They fell further and still have more ground to make up. Wells Fargo fell the least.

I can’t say that I like banks, but we do need them. In spite of being a global company BAC touts having maintained their local focus. It does seem to be that way in spite of all the past wrong doings. I first liked that they are based in Charlotte, North Carolina, but then realized that this is just a perception and means nothing at all.

They do have a couple of avenues in place for wealth management with both Merrill Lynch Wealth Management and U.S. Trust. I did not look at the details of this, but no doubt this generates a lot of revenue.
Banking is a complicated business, so who is in charge?

The CEO is Brian Moynihan who has been in charge since the financial crisis, when they had large mortgage losses. He may not have the charisma of Jamie Diamon, but he is credited for the turn around. He is a lawyer, educated first at Brown and then Notre Dame.
For diversification I have been trying to find a bank that fits as a player in my dividend payers and growers, but a true bank just does not fit, so I desire to get a full position into BAC.

Ciena Corporation (CIEN)

I must confess I knew little about this Cramer pick and now I know, to put it simply, they design network systems.

They cite:  With our deep expertise in optical, Ethernet, and network automation, we specialize in unlocking that potential.” Scanning their website they do seem to be a bit of a pioneer.
I like that they grow, they acquire, and they are global. I don’t like to see a negative EPS.

I like their participation in the telecom sector, but it is a bit complicated to go deeper, so I will move on and try to learn more as time goes on. I normally don’t buy stock in companies that are not profitable but it’s easy to see that this one could really fly in terms of price growth or of cource the opposite could occur.

What did I see in my weekend review?

The 10-yr Treasury yield is 2.83 %

IBD (Investor Business Daily) is: Confirmed Uptrend

Copernicus Systems: Long

Moneys Flows:  all positive, but continuing to trend downward


HAIN +17.69% and yes I would buy this one again, so no selling here now. (Also need to consider WWAV)

CLF -9.14% I don’t like this, but it’s a very small position why not give it one more week.

Cramer Picks:

JCI -.63%

BAC +1.68%

CAT -1.09%

CIEN -1.64%

GOOG -.81%

XLNX -1.19%

TJX -1.33%


QQQ +11.50% 

EWG +1.54%

IBB +9.25%

IWM +.42%

What will I do?

Continue my study of the Cramer recommendations, will continue to take partial positions.

I hope you have a great week.


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