GOOG has been a stellar outperformer over the past 6 months. You know what else has performed admirably over the past 6 months? No, I wasn’t going to litter this blog with perverse exclamations. Where were you raised, an Ohioan barn?
Big, stupid, food companies and large industrial names have done well.
Here are some of the “exciting” winners over the past 6 months, sorted by market cap.
AAPL +18%
WMT +11%
GOOG +24%
PM +19%
INTC +14%
MRK +12%
MCD +17%
CSCO +20%
SNP +15%
V +14%
Okay, when the shareholders of those companies aren’t inducing sleep through ambiens, they are beating people into comas with their canes. It truly is wondrous to see so many large cap stocks with such big gains, during a period when the European Union was/is on the verge of failure. Perhaps there is a hidden message, encrypted in the performance data of the aforementioned mega-caps? I believe, if anything, they are telling us to urinate on Europe, while getting long Big American, fat ass, companies.
This is of great interest to me.
Having a looksy over my biggest losers of 2011, there was a common denominator. The vast majority of my losers were mid to micro cap names. Essentially, investors are shitting on the small, while lauding and bedazzling large cap names with jewels. There is something to be said about this, AND MORE.
If the question was proposed to me, “How long can the mundane last?”–I’d say indefinitely. After all, the above companies have balance sheets better than any sovereign nation. So, one could make the argument that instead of money fleeing Europe for American treasuries, it would be better suited in GOOG bonds or MCD, no?
The run is not over.
If TLT can hit absurd levels, so can the PE multiples of large cap generals. There will come a point when investors say “fuck this shit”, after getting whipsawed in speculative tech and commodity names, and just allocate the whole thing into mega-caps paying rich divvies. These companies are better than gold, treasuries and munis. They are vital to life and are more credit worthy than the United Steaks, Chiner and Fag-land combined.
The condensed message of this post: if you’re gonna get long, do it big cap, or suffer the consequences of uncertainty.
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V is the best of your list there, I reckon.
V + AAPL + MCD pretty much sums up the current state of the economy.
sorry to burst your bubble, dltr pretty much sums up the real economy. and those BIG FUCKING AMERICAN COMPANIES,get on their hands and knees for shelf space their. and just to let yuz know,thats my pick for the g-note contest dis yer
That’s what I meant—V financed indulges on the latest AAPL gadgets when money is only enough for MCD.
V doesnt finance anything. They process transactions.
The amount of transactions are increasing via demographics (old people dying and being replaceed by young non cash users), emerging markets (some places don’t even know what a credit/debit card is),overall population growth and also conversion from paper to plastic in established markets.
V is the best on the list and any list for that matter.
Even all the farmers in Ohio barns prefer to pay for their crop seed via plastic.
V provides liquidity and short-term financing when people are strapped for funds.
Demographics, emerging markets, etc is so generic, it’s not an argument, but rather stating the obvious that the world is changing which benefits everyone, even 0hio farmers (that famous “Terminal Food” thesis, you know.)
So generic that is’s gone from $45 a share to $103.
Funny you say its stating the obvious, but as a long term shareholder I can assure you people used to think V and MA were just like Capital One – and many still do.
Do you borrow money from V? Or do you borrow from BAC or JPM with a V logo on it? Who exactly is lending the money?
Good point. You’re right.
I’d be a little nervous Pervis around V with this new Credit Card Czar being force fed to the American people via Caesar Obamustus.
He may decide that V is “making too much money.”
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The next six months will probably be a different list. Perhaps high-mid caps, next tier range of companies.
Look at WTW go. Everyone feels fat after the holidays.
fitness stocks are doing great, LULU included.
My FA was very bullish on WTW when we met up this weekend, but Damn…
Look at little eDiets.com (DIET) !
UP 100% in about 4 or 5 days !
.
Time to short in February?
… NTRI movin’ as well ! fwiw
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Add GE and AMGN to the list. Also notable are the non-investment banks (USB/WFC) which are pushing higher today.
As far as banks I like PNC as well.
USB has an investment bank, as does WFC.
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I can never win with you Jakey…
always urinate on europe
Micturate.
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best post of 2012
Screen for free cash flow of 200m per year or greater for each of the last five years…….plus
ROE of 15% or greater for the last five years.
Add in some financial health criteria.
You will get a fair list to begin study.
HGSI moving on good volume and no news
Yeah chasing safety instead of yield should be the new normal. Stupid over used mainstream media cliche. Its the new normal because the old one wasnt normal
Fly,
So that you know, my DECK is bigger than yours will ever be. ’nuff said. Carry on, plebs.
Thanks Master Fly.
$COMPQ doing nicely today and looking like it’s going to make a new rally closing high by exceeding the early December close. Next up will be the early December intra-day high.
Big Cap divy stocks is where it’s at…has been and continues to be. Big Cap US names are going to turn into World Mega Cap stocks…much safer than Italian bonds.
Never underestimate the creativity of the Italians in out conniving the connivers in monetary matters. No joke, this is a must:
http://www.investorvillage.com/smbd.asp?mb=16645&mn=2795&pt=msg&mid=11315634
Rick debt roll’d
Again…look at $BPGDM:GDX…still at multi-year low.
Miners are “Pawn your wife” buys.
I sold a large “chunk” of my NUGT position yesterday for a very nice profit. Strongly considering taking profits today on the remaining shares (currently UP over 17%).
They’ve had a nice little run here. Not so sure I would be “pawning the wife”, at least not here. imo
The bears are losers!
Any bears still short in BAC were just being greedy and deserve to have their face ripped by this move.
Anyone know what’s going on with WNR? Yeah they instituted a small dividend but wouldn’t think that would be enough to cause it to shoot up 2+% on high volume on a day when the rest of the refiners are getting hammered. I’ll gladly take it though.
Large Cap Company shareholders are also voters. and its an election year. Huh? wonder if thaat has anything to do with it
dr FLY what are your thoughts on CREE? its cheap dirt?
what’s interesting on Fly’s list is, except for WMT, all the companies listed have global (read Euro) exposure.
Even WMT has some, but small in comparison
AAPL resistance 401/404..it keeps sucking people in just above that and sells off…nothing new.
To answer your question, yes I’m from Ohio. Moreover I was pleasantly surprised u didn’t label it 0hio yet again. Must be growing on ya…