Daily Posts Archive

Disney (DIS) is known and generally respected by every American (75% of revenues come from the U.S. and Canada). And its stock is known to every investor. But DIS to me looks ripe for a major fall. Since the 2009 market bottom, the stock has appreciated 494% (and that’s after the recent plunge). In the process, it’s gone from deeply undervalued to overvalued.

There’s a war going on! Growth investors are proclaiming that Apple is done, kaput. It’s history. To a value investor, however, Apple shares are an irresistible bargain! Apple sells at a very reasonable 13 times earnings and pays a nice dividend yielding 1.9% annually. Further, Apple’s PEG ratio (current P/E divided by the forecast growth rate) is also very attractive at 0.86.

Apple’s new product announcement this week was a big deal. When a company’s market cap is hovering around $640 billion, its gross profit was $70.5 billion in the past year and its stock is held by 2,157 institutional investors, it can’t be anything but a big deal. But for any growth investors out there who have their eye on AAPL, I’ve got to ask, “What the heck are you thinking?”

In this week’s Stock Market Video, Mike Cintolo takes some extra time to talk about his trend-following indicators, where they stand now, and when new buy signals could show up.

I want to run through all my thoughts on the market: What I’m watching now, some stock and sector ideas that are beginning to show relative strength, the possibilities of a bear market (and what that will entail) and exactly what would turn me bullish in the weeks ahead.

Stock market predictions are easy to make. They’re also utterly meaningless - and potentially dangerous if you listen to them.

Market bottoms are a process; they don’t happen overnight. Even if last week turns out to be the market bottom, it’s unlikely the market will go straight up from here—we’re much more likely to see several more weeks or months of volatility, including multiple re-tests of the lows hit in the past two weeks.

My contention today is that the last thing a growth investor needs to hear right now is someone predicting which way the market will move next. And the predictors are running wild.

In this week’s Stock Market Video, Cabot Growth Investor and Cabot Top Ten Trader Chief Analyst Mike Cintolo discusses the market in detail,