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BUY on WEAKNESS
They delivered a pretty good report yesterday, but Baker Hughes' report today dragged down this and other oil stocks. HAL is a much better company than BH. He added more shares today and yesterday. HAL reported a modest top and bottom line beat, but investors who took profits picked on the slightly disappointing margins. HAL raised its 35% growth forecast for this year over the previous 25% forecast; and they noted new projects starting later this year. Meanwhile, international business is gaining momentum this quarter. HAL said there was already supply tightness before the Russian war. The stock trades at a reasonable valuation and is a definite buy on the current dip.
oil / gas field services
BUY
He doesn't care about its near term. He has backed their CEO from day one and will continue to.
food processing
BUY
In contrast to Netflix, Disney also has a lucrative theme park complex with an extensive stable of intellectual property that can be used any ride. Add to that ESPN. Disney should not be tarred by the same broad brush as Netflix. Disney shares have returned to the pre-Disney+ launch. Sure, punish Disney for spending $71 billion to overpay for Fox, but that's in the past and not the fault of the current CEO who will create value from hereon. He just added to his shares and will keep buying if shares keep falling.
entertainment services
BUY
Their report today was panned by shareholders, because raw costs have jumped in the last quarter. But P&G has some of the finest brands in the world, so they were able to pass on price increases to customers. P&G is the classic stock for today: they make things that are profitable and trades at a reasonable valuation.
misc consumer products
BUY
Tuesday morning they reported an inline quarter, except the previously struggling medtech division which is now soaring. JNJ said that after Covid that surgeries would return, so medical device sales would bounce back--and they did. Has a fine balance sheet and does share buybacks. JNJ returns wealth to shareholders.
biotechnology / pharmaceutical
BUY
Trades at a cheap 12x earnings, pays a 3+% yield and buysback shares. This and Bank of America are the top banks. MS' PE is shrinking even as the Fed raises rates. He added more shares last week when it was down.
investment companies / funds
BUY
True, it's expensive and doesn't return wealth to shareholders. (It reported tonight.) But, its strength lies in CEO Elon Musk.
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