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November 22, 2022

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Stock Wealth Safely selects the industrial company PKG.

PKG (Packaging Corporation) is a leading American producer of containerboard and corrugated products. It has a 10% share of the domestic market and focuses on smaller customers.  Its mills are running at full capacity and customers have accepted higher prices that are needed because of inflationary pressure. It is generating strong free cash flow which has allowed a dividend increase.

PKG has met or exceeded earnings expectations in the last four quarters.

PKG has an attractive dividend at 3.8% and is undervalued with a PE of 11.6 compared with an annual average of 19.

The 20 day simple moving average = 125.66, 50 day = 119.94, 100 day = 129.74 and 200 day = 141.28

PSAR has been buy since October 14, the 4 day SMA is 130.80, 9 day SMA 129.73, ADX 25.9, ADX(+) 30.1 and ADX(-) 17.3. M12 is 5.10 and M9 4.32. OBV is rising.

The stock price of PKG dropped after the company reported it expected decreased demand over the upcoming months. This has resulted in a more attractive price and a good time to purchase this solid company with a strong track record of performance. PKG closed at 133.32 on November 22 and will likely increase in the direction the 52 week hi of 168.50.​

November 21, 2022

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Stock Wealth Safely selects the bank BK.

BK (Bank of New York Mellon) is the largest custodian bank in the world with 46 trillion assets. It is diversified with seven business lines and low credit risk compared to other banks. It offers a variety of services that appeal to its clients and make them reluctant to switch. BK has been focusing on controlling expenses and consistently delivers strong returns on tangible equity.

BK has exceeded earnings expectations in the last 4 quarters, including a 10% positive surprise in the most recent quarter,  and estimates have been stable for the past 60 days.

The dividend is attractive at 3.3%. P/E is 10.3 compared with an average annual value of 13.

The 20 day simple moving average = 42.87, 50 day = 41.48, 100 day = 42.20 and 200 day = 45.25

PSAR has been buy since November 18, the 4 day SMA is 44.23, 9 day SMA 43.89, ADX 21.7, ADX(+) 28.7 and ADX(-) 16.9. M12 is 1.39 and M9 1.46. OBV is rising slightly.

BK is a solid diversified bank whose stock price is now considerably undervalued. Technical indicators are turning positive. BK closed November 21 at 44.65 and should move towards its 48.20 consensus target. ​

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November 15, 2022

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Stock Wealth Safely selects the pharmacy chain WBA.

WBA (Walgreens Boots Alliance) is a leading global drug distributor and retail pharmacy chain. Pharmacy sales are about 75% or revenue and have a 25% share of the US retail market. It is attempting to increase its presence as a one-stop destination for health care by adding primary care clinics as well as expanding its product offerings in health and beauty products.  It is adding clinical partners such as CareCentrix and HealthShields to provide additional access to home health care.

WBA has exceeded earnings expectations in the last 4 quarters and estimates have been stable for the past 30 days.

The dividend is very attractive at 4.7%

The 20 day simple moving average = 36.76, 50 day = 34.76, 100 day = 36.59 and 200 day = 40.79

PSAR has been buy since October 13, the 4 day SMA is 40.24, 9 day SMA 38.61, ADX 35.8, ADX(+) 39 and ADX(-) 11.3. M12 is 2.14 and M9 1.90. OBV is rising.

WBA is a quality stock whose price is recovering. Technical indicators are strong and this is a good entry point, especially with the dividend. WBA  closed at 40.65 and should increase towards its 52 week high of 55.00.​

November 11, 2022

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Stock Wealth Safely selects the industrial company DOV.

DOV (Dover) is a diversified manufacturer of precision engineered products supplying industrial, biomedical and aerospace industries. It holds first or second market share in most of its markets. By focusing on cost controls, DOV has maintained strong operating margins. DOV should also be able to increase revenue, especially in its climate segment.

DOV has exceeded earnings expectations in the last 4 quarters and estimates have been stable for the past 30 days. The trailing P/E is 17.5 compared with a 10 year average PE of 17.0.

The 20 day simple moving average = 129.17, 50 day = 125.29, 100 day = 126.93 and 200 day = 136.64.

PSAR has been buy since October 18, the 4 day SMA is 135.09, 9 day SMA 133.51, ADX 18.8, ADX(+) 36.1 and ADX(-) 15.5. M12 is 5.65 and M9 4.39. OBV is slowly rising.

DOV is a strong company with solid growth prospects. Its price has been rising and technical indicators suggest that this rise will continue. DOV closed at 140.94 on November 11 and has room to climb further towards its 52 week high of 184.05.​

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November 1, 2022

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Stock Wealth Safely selects the bank JPM.

JPM (JPMorgan Chase) is a global financial firm and is the largest bank in America. Its combination of scale, good risk management and diverse offerings provide a strong competitive advantage that provide a leading market share in many areas and opportunities for continued organic growth. Acquisitions such as Global Shares will promote also promote growth by allowing the development of new clients. The current high interest rates are positive for banks. The dividend is attractive at 3.2%

JPM beat earnings expectations in the September quarter after missing in the two previous quarters. Estimates have been climbing over the past 60 days.

The 20 day simple moving average = 115.96, 50 day = 114.57, 100 day = 114.98 and 200 day = 125.31

PSAR has been buy since October 14, the 4 day SMA is 126.18, 9 day SMA 123.58, ADX 27.5, ADX(+) 34.5 and ADX(-) 13.5. M12 is 7.95 and M9 3.92. OBV is rising.

JPM is a dominant bank whose stock price dropped along with profits in the first two quarters but has rebounded strongly since the third quarter results. Technical indicators are positive. JPM closed at 128.15 on November 1 and show grow towards its consensus high of 137. ​

October 25, 2022

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Stock Wealth safely selects the farm equipment company AGCO.

AGCO (AGCO) is a leading international manufacturer of agricultural equipment. It had poor financial results in the first half of this year but attributes this to supply chain problems. AGCO believes that retail demand remains strong with growth coming from increased planted acres because of crop demand especially in China. Increased crop prices should allow farmers to replace old equipment.

AGCO has exceeded earnings expectations in the last 4 quarters and EPS revisions have been up over the past 30 days.

The 20 day simple moving average = 107.50, 50 day = 107.57, 100 day = 106.57 and 200 day = 117.33

PSAR has been buy since October 4, the 4 day SMA is 115.16, 9 day SMA 112.51, ADX 27.1, ADX(+) 29.4 and ADX(-) 10.6. M12 is 5.65 and M9 2.40. OBV is rising.

AGCO has strong growth prospects for the rest of the year, short term technical indicators are strong and it appears to have broken through a resistance of around 115. Valuation remains attractive with a P/E of 11.3 compared with its average of 13 over the past 10 years. AGCO closed at 118.70 on October 25 and should increase toward its 135.75 consensus target.

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October 17, 2022

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Stock Wealth Safely selects the home improvement company LOW.

LOW (Lowe’s) is one of the leading global hardware and home improvement companies. It has maintained its low cost position by focusing on retail fundamentals and this allows it to maintain a strong competitive position. It has significant room to grow in the professional market that currently represents only about 25% of sales.

LOW has exceeded earnings expectations in the last 4 quarters although by only 0.9% in the last quarter. Estimates have been generally stable over the past 90 days, while many other companies have been reducing estimates.

The 20 day simple moving average = 192.52, 50 day = 198.68, 100 day = 192.39 and 200 day = 205.44

PSAR has been sell since October 13, the 4 day SMA is 192.52, 9 day SMA 195.29, ADX 12.2, ADX(+) 18.4 and ADX(-) 25.7. M12 is 1.62 and M9 – 0.71. OBV is flat.

LOW is a high quality company that is now significantly undervalued with a P/E of 15.2 compared with an average of 18.5 over the past 10 years. The dividend is quite good at 2.2%. We believe that the market may be nearing a bottom and this is a good buying opportunity. ​

             September 8, 2022

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Stock Wealth Safely selects the communications technology company QCOM.

QCOM (Qualcomm) is the leader in wireless chips, especially in the 5G products used by smartphones and automobiles. Most revenues are coming in the QCT division where it has been expanding its share in handsets, especially in the Android market.

It also collects royalties on most 3G, 4G and 5G phones sold from its extensive patents used in these networks. This should allow it to maintain strong cash flow as the market for its products continues to grow.

QCOM has exceeded earnings expectations in the last four quarters and estimates have been stable.

The 20 day simple moving average = 140.17, 50 day = 141.52, 100 day = 138.27 and 200 day = 153.55

PSAR has been sell since August 22, the 4 day SMA is 128.15, 9 day SMA 31.63, ADX 19.7, ADX(+) 17.0 and ADX(-) 31.2. M12 is -7.55 and M9 0.-4.27. OBV is dropping.

QCOM is a quality stock that is undervalued. It has been dropping along with other technology companies as interest rates have climbed. Although short term technical indicators are negative, the stock appears to be reaching  bottom and the price has some protection from the strong dividend of 2.3%. QCOM closed at 18.85 on September 8 and should climb toward its consensus target of 186.64​.

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September 2, 2022

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Stock Wealth Safely selects the bank BAC.

BAC (Bank of America) is a major bank with a strong presence in retail, commercial and investment banking as well as a leading brokerage in Merrill Lynch. It is investing in technology and marketing to allow expansion into new markets and it is poised to become one of the strongest national franchises. The balance sheet is strong which supports the attractive dividend of 2.6%. BAC is extremely rate sensitive and should benefit from the current high rates.

BAC has exceeded earnings expectations in three of the last four quarter, with a 5.2% miss in the June quarter contributing to the recent stock price decline.

The 20 day simple moving average = 34.85, 50 day = 33.44, 100 day = 34.64 and 200 day = 39.66

PSAR has been sell since August 19, the 4 day SMA is 33.65, 9 day SMA 34.07, ADX 17.6, ADX(+) 26 and ADX(-) 24.3. M12 is -0.14 and M9 0.66. OBV is slowly dropping.

BAC is a strong bank that is poised for growth. The stock price dropped to a low on July 14 at the time of its earnings announcement, climbed and dropped back again. However, it may have found a support level at around $33. It closed September 2 at 33.43 and we believe this is a good buying opportunity. It should increase towards its consensus target of 42.41.

             August 29, 2022

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Stock Wealth Safely is buying the financial services company V.

V (Visa) has long been the leader in the electronic payment infrastructure and its position appears to be strong and scalable. Digital payments are now more common than cash but should continue to increase their dominance. Consumer spending and travel, both drivers of payments, should rebound after dropping during the pandemic.

V has exceeded earnings expectations by increasing margins in each of the last four quarters.

The 20 day simple moving average = 201.77, 50 day = 207.35, 100 day = 207.22 and 200 day = 210.46

PSAR has been sell since August 23, the 4 day SMA is 205.43, 9 day SMA 208.86, ADX 12.4, ADX(+) 14.7 and ADX(-) 26.3. M12 is -0.67 and M9 -0.26. OBV is slowly dropping.

V is a perennial market leader that continues to have strong prospects for growth. The recent pullback in the stock price is related to overall market conditions rather than weakness in the fundamental outlook for Visa. Although short term technical indicators are negative, this appears to be a good entry point for this blue chip stock. V closed at 202.33 on August 29 and should climb back towards its 52 weeks hi of 236.96.​

             September 8, 2022

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Stock Wealth Safely selects the communications technology company QCOM.

QCOM (Qualcomm) is the leader in wireless chips, especially in the 5G products used by smartphones and automobiles. Most revenues are coming in the QCT division where it has been expanding its share in handsets, especially in the Android market.

It also collects royalties on most 3G, 4G and 5G phones sold from its extensive patents used in these networks. This should allow it to maintain strong cash flow as the market for its products continues to grow.

QCOM has exceeded earnings expectations in the last four quarters and estimates have been stable.

The 20 day simple moving average = 140.17, 50 day = 141.52, 100 day = 138.27 and 200 day = 153.55

PSAR has been sell since August 22, the 4 day SMA is 128.15, 9 day SMA 31.63, ADX 19.7, ADX(+) 17.0 and ADX(-) 31.2. M12 is -7.55 and M9 0.-4.27. OBV is dropping.

QCOM is a quality stock that is undervalued. It has been dropping along with other technology companies as interest rates have climbed. Although short term technical indicators are negative, the stock appears to be reaching  bottom and the price has some protection from the strong dividend of 2.3%. QCOM closed at 18.85 on September 8 and should climb toward its consensus target of 186.64​.

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September 2, 2022

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Stock Wealth Safely selects the bank BAC.

BAC (Bank of America) is a major bank with a strong presence in retail, commercial and investment banking as well as a leading brokerage in Merrill Lynch. It is investing in technology and marketing to allow expansion into new markets and it is poised to become one of the strongest national franchises. The balance sheet is strong which supports the attractive dividend of 2.6%. BAC is extremely rate sensitive and should benefit from the current high rates.

BAC has exceeded earnings expectations in three of the last four quarter, with a 5.2% miss in the June quarter contributing to the recent stock price decline.

The 20 day simple moving average = 34.85, 50 day = 33.44, 100 day = 34.64 and 200 day = 39.66

PSAR has been sell since August 19, the 4 day SMA is 33.65, 9 day SMA 34.07, ADX 17.6, ADX(+) 26 and ADX(-) 24.3. M12 is -0.14 and M9 0.66. OBV is slowly dropping.

BAC is a strong bank that is poised for growth. The stock price dropped to a low on July 14 at the time of its earnings announcement, climbed and dropped back again. However, it may have found a support level at around $33. It closed September 2 at 33.43 and we believe this is a good buying opportunity. It should increase towards its consensus target of 42.41.

             August 29, 2022

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Stock Wealth Safely is buying the financial services company V.

V (Visa) has long been the leader in the electronic payment infrastructure and its position appears to be strong and scalable. Digital payments are now more common than cash but should continue to increase their dominance. Consumer spending and travel, both drivers of payments, should rebound after dropping during the pandemic.

V has exceeded earnings expectations by increasing margins in each of the last four quarters.

The 20 day simple moving average = 201.77, 50 day = 207.35, 100 day = 207.22 and 200 day = 210.46

PSAR has been sell since August 23, the 4 day SMA is 205.43, 9 day SMA 208.86, ADX 12.4, ADX(+) 14.7 and ADX(-) 26.3. M12 is -0.67 and M9 -0.26. OBV is slowly dropping.

V is a perennial market leader that continues to have strong prospects for growth. The recent pullback in the stock price is related to overall market conditions rather than weakness in the fundamental outlook for Visa. Although short term technical indicators are negative, this appears to be a good entry point for this blue chip stock. V closed at 202.33 on August 29 and should climb back towards its 52 weeks hi of 236.96.​

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August 16, 2022

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Stock Wealth Safely buys the athletic apparel maker NKE.

NKE (Nike) is the leader in the athletic apparel in all major categories in countries around the world. It has unsurpassed brand appeal that allows it to maintain premium pricing. It is improving its operating performance and retailing strategies to improve margins and market share. Much of its future growth will come in international markets as developing regions have more middle class consumers who will want and be able to afford the Nike brand.

NKE has exceeded earnings expectations in the last four quarters and estimates have been stable for the past 30 days. 

The 20 day simple moving average = 112.59, 50 day = 110.25, 100 day = 116.58 and 200 day = 134.93

PSAR has been buy since July 28, the 4 day SMA is 116.14, 9 day SMA 114.46, ADX 13.4, ADX(+) 33.0 and ADX(-) 21.1. M12 is 3.37 and M9 3.29. OBV is rising rapidly.

NKE is a high quality stock whose drop in stock price in early June was not justified by fundamentals. The price is recovering but it remains oversold. The closing price of 118.06 on August 16 is a good entry point. The price should grow towards the 137 consensus target. ​

November 24, 2022

Stock Sealth Safely selects the pharmaceutical company SNY.

SNY (Sanofi) is a large drug manufacturer with a wide range of drugs and vaccines. It focuses on drugs for immunology and rare diseases which tend to maintain high prices. It also has drugs in the blockbuster category such as Dupixent (dermatitis, sinusitis, asthma) and its range of insulin products.

SNY has exceeded earnings expectations in the last four quarters.

PKG has a very attractive dividend at 4.7% and is undervalued with a PE of 10.6 compared with an annual average of 15.

The 20 day simple moving average = 43.56, 50 day = 41.14, 100 day = 43.41 and 200 day = 47.96

PSAR has been buy since November 18, the 4 day SMA is 44.84, 9 day SMA 44.05, ADX 27.7, ADX(+) 34.7 and ADX(-) 19.1. M12 is 1.08 and M9 1.35. OBV is rising.

The stock price has dropped because of legal claims over Zantac, but these are at an early stage and we believe that this is an overreaction. SNY is an established company with strong prospects. It is undervalued and technical indicators are positive. SNY closed at 45.04 on November 23 and should continue to move upwards towards its 52 week hi of 58.10. ​

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