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DON'T BUY

This is right in the middle of his “zone.” It could go up or down from here. His model price is $121.13, but this is a cyclical stock near the end of the cycle, so it is unlikely to reach or hold that price. He would buy at $71 and sell at $98. At this price, he would do neither.

Automotive
DON'T BUY

Has been trading down like WestJet. If it continues its negative trend, it is likely to get to $18.85. Like WestJet, this could rally under the right conditions. He would buy at $18.85, but not now. If it dropped below $18.85, he would sell and buy in again around $15.46.

Transportation
BUY on WEAKNESS

His model price is $75.91, which is a 20% upside. However, he sees strong resistance at $67.85.He thinks that is the top, for now. He would hold at this price.

food stores
BUY

This is an interest-sensitive stock. It is currently selling at its model price. The dividend is covered by earnings. He is positive on the stock. The stock has come down a fair bit and is at a good-looking point for buying. If it does go down further, to $31, he would see a warning that the stock is going to go lower. However, there is no sign of that here, yet.

electrical / electronic
BUY

They just announced a dispute with the IRS which affected the stock price today. He expects this to take years to resolve. Canadian software stocks have done very well over time. He would be a buyer on dips, and today’s news created a dip, so he would buy. The model price is $63, which gives a 26% upside from the current price. He would plan to hold this for longer than 5 years. 22. Amazon (AMZN-O)(Doesn’t Own)(Don’t Buy). If the S&P goes higher, certainly Amazon will go higher. It has positive equity, but it is too expensive for a value investor.

computer software / processing
TOP PICK

The last earnings report was excellent. The stock now yields 1.6%. He owns a lot of this personally. His model price is $32.45, which is a 9% upside. He expects it to go to $32.70. If the market moves higher from here, it will be led by the too-big-to-fail banks. (Analysts’ price target is $34.34)

banks
TOP PICK

The stock fell when the CEO left in late June. He wants to buy this stock on the dip. His model price is $79.49 showing a 50% upside. He thinks that old tech has not risen as much as other tech companies, like Micron and nVidia and that leaves opportunity for patient investors. (Analysts’ price target is $58.91)

electrical / electronic