Recent Buy

Those of you who follow this blog will remember that it was not long ago that I sold AT&T to free up funds for a possible real estate purchase.   You might be questioning why I’m buying stocks now.  The short answer is that I have some fresh funds from a recent sign on bonus as well as money from employment once again.  I believed the stocks I purchased where at a good value and I did not want to pass them up.  I believe they both will make strong additions to my portfolio, but only time will tell if this was as wise move or not…

Here are the two stocks that were purchased in October:

  • 100 shares of INTC at 21.50 with a YOC of 4.18%
  • 100 shares of NSC at 61.50 with a YOC of 3.25%

Both of these stocks were on my watch list and really piqued my interest when they issued adjusted earnings outlooks.  Both stocks dropped in price after their warnings and then again when they actually reported those earnings.  NSC dropped almost 7.5% in one day when it reported its actual earnings!   It is times like these I become a buyer.  Both stocks are close to their 52 week lows.  That certainly does not mean they can’t go lower, they certainly can, but for me value is found when prices are depressed due to pessimism.  I will leave it to the reader to decide if the reasons behind these price drops are indicative of long-term trouble or short-term challenges.  Personally, I’ve adopted the latter view.

6 thoughts on “Recent Buy

    • DGM, I think there has probably been a few buyers of these two as of late. If NSC drops to around 60 and/or INTC drops to around 20 I will probably pick up a few more shares. I’ve yet to get a stock at its bottom of a price decline, but one of these days 🙂

      I know this will sound like market timing, but I’m also waiting to see how the markets react after the election and as we get closer to the dreaded “fiscal cliff”. I may get my wish to add some shares to the positions in the above stocks or open a new position in a few others I have my eye on.

    • FI, Yes they are great!! When I purchased T early last year it was with a bonus as well. I suppose there are worse things a person can do with those bonuses eh?? Wish I was always this responsible with my money :-/

  1. Great buys Stoic!

    NSC is on my list for a possible purchase this month. We’ll see how things go.

    I also view the troubles at these firms as short-term challenges. However, I first initiated a position with INTC last summer, and over the course of 18 months not much has changed in respect to their mobile business. However, I find the “demise” of the PC as overreacting and they have a strong business in the server space.

    Best wishes!

  2. Looks good. Intel has actually made some inroads into mobile, it’s quite encouraging. The Atom processors are now competitive with ARM, and are already in some smart phones and tablets. The next line will be designed specifically for mobile devices! I’m excited to see how that will play out.

    It looks like Intel will have problems maintaining their high margins in mobile even if they become a major supplier. However, they’ve been doing great in cloud computing and servers. I think the PC business will decline but still be relevant for a long time. I’m sorry but tablets and smart phones do not give me the same experience as a laptop. No real reason that I even need a tablet seeing that they are inferior. That’s just me and based off my needs.

    You got a rock bottom price with NSC, have to be excited about that one! good stuff!

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