Short Term Stock Picks for October and November 2014

Rumors are circulating that Warren Buffet and Berkshire Hathaway may want to take Coca Cola private.

Warren Buffet and Berkshire Hathaway Rumored to Take CocoCola (KO) Private

  • CocoCola is flat year to date
  • Not really trading as though it will be taken over
  • There seems to be little truth to the rumor

Based on the actions the Fed took on October 29, here are some stock plays we can look at making for the months ahead.

We’re Entering a Seasonally Strong Period

  • Buy protection and low volume plans
    • Get out of large cap
    • Look at ETF DIA
    • Costco is a good investment if interest rates will rise

Visa stock near-term outoook

  • Company forecasted revenue growth for 2015
  • Trades at 20x earnings, not worth chasing this stock, but may be a good long-term investment since the stock was below $200 a week ago and you want to get in when its low.

3D Printing Took a Hit as HP Enters the Market

  • HP announced it is creating enterprise-level 3D printers.
  • This is good for the 3D printing space as HP validates the market and adds legitimacy
  • HP has a leg-up due to their sales force and existing relationships
  • 3D printing is forecasted to be a 4B market
  • This opens up the doors for acquisitions by HP of smaller companies
  • Stratasys would be the stock to own in this space
  • Other Printers: 3D Systems, Exone, Voxeljet
  • HP is cheap at ~$35

Difficult Times for Internet Stocks

The big four internet stocks all got slammed after reporting earnings.  Facebook, Amazon, Twitter and Nexflix all dropped over 6% after reporting earnings.

  • The rally for these internet stocks may be over – valuations are too high
  • Facebook needs to be building a company for the next 20 years – they have a 12B in revenue
  • Facebook may be a buy here for a long play

S&P 500 Changes

  • Level 3 will enter the S&P 500 replacing JBL

How To Trade the Earnings Reports

  • F5 Networks – seems to be trading cheap right now.  Trading at $117, target is $145 – we expect it to hit that by the end of the year.
  • Weight Watchers – appears cheap, but we need to look at their debt – don’t buy
  • Baidu beat earnings, missed on revenue – expected to grow next year and may be a buy on a pull-back
  • Trulia – currently at a pull-back – if you’ve wanted to own this stock, now is the time to get in…with caution

Now may be the time to invest in Yahoo!

  • How much is the Yahoo! stock really worth?
  • CEO is pretty sure they can get by without paying taxes on Alibaba
  • Expectations for Yahoo are up to $50/share
  • Alibaba group was trading at 2x volume

Shares of Dreamworks are soaring past expectations

  • Stock is up almost 4%
  • Strong international performance of “How To Train Your Dragon Part 2”
  • Dreamworks may be buy after Q3

 Quick Picks

  • Panera Bread – Buy on a dip
  • Trinity Industries – Buy at $30

Random Stock Picks

  •  Gilead is a buy at $105
  • BBY is traditionally a buy for the holidays.  If it breaks $30, it may slip to $25
  • Apple will be a good play based on iPhone6 holiday sales
  • Do not stay in Sprint – Sell
  • Goldman Sachs is going higher
  • QQQ is going down
  • BAC is going up