3.05.2007

BLUE CHIPPING


Early morning futures find the major indexes down about 90 on the DJIA and 10 on the SPX.

Checking the last major market drop, May of last year, the drop at its worse was about 1,000 points on the DJIA and 110 SPX points from top to bottom over the early May / mid June trashing.

This morning's numbers will get us about 800 off the recent highs on the DJIA and 90 on the SPX. Don't know if that will be the extent of the damage but in my view stocks are getting cheap. Also, from experience, stocks go up and down more than one thinks possible or justified, just check the March 2003 low on the SPX; under 800. FWIW.

One big cap stock that wasn't mentioned in my previous post that looks attractive in light of its own recent sell off is JNJ. The chart, with the PE and dividend yield included, does seem to indicate a decent entry point.

According to Value Line's estimates, JNJ is trading at a P/E of 15.6 on 07 estimated EPS ($3.95); and a P/E of 14.6 on 08 estimated EPS ($4.25). The yield of 2.5% is historically high and JNJ has a pristine balance sheet and should be a top defensive play if the economy does indeed roll over. Oh, and BRK owns more than 21 Million shares of JNJ as at December 31.

4 Comments:

Anonymous Anonymous said...

Plunge Protection Team must be in full swing today. Uncle Ben printing money like there's no tomorrow.

11:24 AM  
Blogger DAVID said...

3,100 more stocks lower than higher at 12:30 PM est.

12:35 PM  
Blogger jobnewsbd24.com said...

GST Eligible Candidate List has been publihsed their official website. Students primary result pdf format download gstadmission.ac.bd in addition our website through Guccho Primary Selection Result Download it

2:20 PM  
Anonymous Asad Khan said...

Assista ao último vídeo do Masked Singer Brasil Completo online. Show exclusiva da Tv Globo 2022 Masked Singer Brasil Episódios transmita online ou baixe gratuitamente em, Todos os episódios mais recentes e anteriores da sua novela favorita da TV brasileira.

5:51 PM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home