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Tell Me Where Does A Fool Go
1973, Elvis did an album fill cut called 'Where Does a Fool Go". It is actually a great song, but the lyrics really set the tone for what is going on in the market. Some long time readers know I have used this before, but it just fits what is going on in the market. Here is the refrain from the song.
Tell me where, where does a fool go,
When there's no one left to listen
To a story without meaning that nobody wants to hear
Tell me where, where does a fool go
When he knows there's something missing
Tell me where, where will I go from here
Where will I go from here?
Really, what is an investor supposed to do in a market like this. While the technical's are saying rally, it sure does not feel like an opportunistic time period to be getting in the market. Most of the time the market trades off of Greed and Fear. Now we have a play on HOPE. People are betting and hoping for global stimulus to keep the oil in the economic machine. The US indexes are showing improvement as they inch above their 50 day averages.
Today we got a nice shot in the arm because of a nice; no dare I say very nice, housing report. Building permits came back to a level not seen since 2009. There is quite a bit of hope hanging on some QE III play from the Fed soon.
We took the hint and got our Salve Lucrum Family back on the boards with a few new positions from our watch list. Here are few of the equities we loaded up on today.
CL Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products comprising liquid hand soaps, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products, such as laundry and dishwashing detergents, dishwashing liquids, household cleaners, oil soaps, and fabric conditioners. The company provides its oral, personal, and home care products primarily under the Colgate Total, Colgate Sensitive Pro-Relief, Colgate Max Fresh, Colgate 360, Colgate Plax, Palmolive, Protex, Softsoap, Sanex, Irish Spring, Speed Stick, Lady Speed Stick, Caprice, Ajax, Axion, Fabuloso, Murphy's, Suavitel, Soupline, Sorriso, Kolynos, elmex, Tom's of Maine, and Mennen brand names to wholesale and retail distributors. It also offers pet nutrition products for dogs and cats. The company markets its pet foods through pet supply retailers and veterinarians for everyday nutritional needs under the Hill's Science Diet brand name; and a range of therapeutic products through veterinarians and pet supply retailers to manage disease conditions in dogs and cats under the Hill's Prescription Diet brand name. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York City, New York.
CL has passed the Buffet Worksheet test, and came close to passing the Auer Screen. CL get a 4 star rating on the buffet value work sheet showing a project increase of value growth in the 33% range over the next 10 years. We are at a sweet spot for an entry point and got most people in at 103.50.
We also did our homework on ESRX Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services in North America. The company offers healthcare management and administration services on behalf of its clients, which comprise health maintenance organizations, health insurers, third-party administrators, employers, union-sponsored benefit plans, workers' compensation plans, and government health programs. Its integrated PBM services include retail network pharmacy management and retail drug card programs; home delivery services; specialty benefit services; patient care contact centers; benefit plan design and consultation; drug formulary management, compliance, and therapy management programs; information reporting and analysis programs; rebate programs; electronic claims processing and drug utilization review; administration of a group purchasing organization; consumer health and drug information; bio-pharma services, including reimbursement and customized logistics solutions; improved health outcomes through personalized medicine and application of pharmacogenomics; and assistance programs for low-income patients. The company is also involved in the distribution of pharmaceuticals and medical supplies to providers and clinics; and healthcare administration and implementation of consumer-directed healthcare solutions. Express Scripts Holding Company was founded in 1986 and is headquartered in St. Louis, Missouri.
ESRX passed both the Auer Screen and Buffet Value sheet also displaying 4 stars. It shows a 38.96% growth rate. While it's about 8% off a perfect entry point, we a re hoping (why not everybody else is) that the rally we are having will give this undervalued stock a nice little kick.
We have taken a new bite at the Apple again for most of the accounts. We got most of the folk in at the 586 level and look forward to a nice run. Apples' last great run took place from December 11 at 426 (Those were the days my friend, we thought they'd never end . . . .), and ended with a peak at 634, the first week in April. If this is indeed a rally, no matter how short lived it might be, AAPL seldom disappoints. Nearly every time AAPL skirts the 50 day average (That would be the two year weekly chart), we see it bounce up. The 50 average at the moment is, 580. we breached that level on May 18, so we are hoping for a run to 720 between now and Q1 2013. The question is will we have the fortitude to stay with some downward head fakes along the way?
We added to our ONLY remaining stock in most of the portfolios. BOFI BofI Holding, Inc. operates as the holding company for BofI Federal Bank that provides various consumer and wholesale banking services primarily through the Internet in the United States. It accepts various deposit products, including demand deposit, savings, and certificates of deposit accounts. It also provides loan products, which consist of single family loans, home equity loans, multifamily loans, commercial real estate loans, recreational vehicle and automobile loans, and overdraft lines of credit. In addition, the company offers online bill payment, interbank transfer, mobile banking, text message banking, ATM cards or VISA debit cards, and overdraft protection services. It serves approximately 36,000 retail deposit and loan customers across 50 states. BofI Holding, Inc. was incorporated in 1999 and is based in San Diego, California.
We tripped over this stock in mid May doing our Auer Screen. We still like it as it has an annual growth trend of 25.63% making it a Buffet 3 Star. It is currently trading about 8% above a nice entry point established back in March. We are looking for a 21-22 price point by December. We added to most accounts at the $18.75 price.
So where does a fool go when there is no one left to listen to a story without meaning that nobody wants to hear? He goes to the Middle Provo river to scare up some trout. We will let you know how we do.
Salve Lucrum
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