Price The Market Part 5
Glen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Am I getting carried away with my ability to price stocks yet? I don't think so. Do you? Here we go!
24. Beam Inc (NYSE: BEAM) is the first company in the list that I wasn't at least somewhat familiar with until I read that it was formerly Fortune Brands. First thought: Alcohol, security and golf are upper class. Sure this is a little pricey but I'll be honest... as the upper class breaks away from the middle class and lower class, golf and security are not a bad business to be in. I think that it's still too pricey for me and you have analysts out there arguing over a few bucks here and there in regards to stock price. There's no margin of safety buying Beam, unless you're drinking Jim Beam. Target: $44-$54.
25. Gamestop (NYSE: GME) is a company that, as a redditor, I have to say I find hard to do business with as a potential patron. You know what though, this is one of the cheapest companies that I've seen so far that is still forecasting growth and we are seeing some great video game releases in the pipeline. Also note their market cap is only 1/3 of sales. Last I checked, yep, GameStop shares are one of the most popular shorts out there. That said, I wish they were stacking up cash as opposed to actively trying to fight the shorts. Doing so would enable them to perhaps buy back shares at a lower price. Because of this I can't go bullish on their guidance. Target: $20-$28.
26. Gannett Co (NYSE: GCI) is the company that I know the best so far on this list. Today's stock chart looks like an absolute spike. What happened is that there are a few advertising companies talking about how advertising revenues are bouncing back. Other companies that soared today include: The McClatchy Company (NYSE: MNI), Lee Enterprises (NYSE: LEE), and Dex One (NYSE: DEXO). Pretty much all of these have been written off as old technology by investors who think that they are a dying breed. In the meanwhile they are stacking up cash and taking names. Price target: $15-$20. Outperform.
27. The Gap (NYSE: GPS) is about as fair valued as you can get. That said if you are smelling a recession or slowdown you might want to sit on the sideline. Note that even since 2003 my price range gives you good points to short and go long. My target is: $17 to $23. If you would have been short above $23 and gradually adding to your long position below $17, you'd have fared rather well across the last 8 years as opposed to breaking even ignoring the accumulated dividends.
I won't be doing a wildcard for this article.
Also, while I'm at it, E-Mail me your favorite stocks and I'll price them too to the best of my ability. My email is globalspeculation at gmail dot com.
Glen and his investors are long Lee Enterprises, Dex One, and the McClatchy Company.
