Blue Chips Recover Strongly

June 16, 2009 By

Here at Stock Trader we are noticing that the markets are certainly looking better and a lot of recovery in some of the blue chip companies has already occurred.

If you keep looking around though there are still some bargains however the proliferation of big companies with low P.E Ratios and high yields is no longer about as much.

Now as I look through the NZX trying to find something of interest to add to my portfolio it is taking longer and longer.

Being conditioned from a few months ago to having bargains galore may be a problem as I pass by companies that are sound and will make good long term prospects because they don’t fit that “absolute bargain” profile I was working with only 1 quarter ago.

Today’s company of interest is one such a company.

I have added them to my pick today though because even though they don’t fit the screens I like the idea that they have been proactive in securing their revenue for the future and the fact that even though the yield is lower than I would like the times covered was 2.

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Entering a New World

June 7, 2009 By

A beautiful paragraph I read today in one of my many emails I receive keeping me up to date with what is happening out there in the world.

“The global economy was entering a new world where little was understood about the underlying fundamental drivers for whatever growth may come.

Mr Graham said every country wanted to “export its way out” of the recession, but little thought had been given to who was going to be importing all the exports.”

At the moment there is a lot exuberance in both our market and the US however I think my memory serves me well, it was not that long ago that we were talking about depressions, stagflation and an end to the world financial markets as we knew it.

So the trick now is not to get caught up in the game that I think is happening in the States, people are afraid they have missed out and are diving in head first causing a mini boom which I think will probably result in another collapse.

So what does that mean for me here, drinking my coffee and trying to decide where to invest for my retirement which is 25 years away?

It means you stick to …{+}

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