Goodfellow LLC is a growth stock website. Our subscribers are stock portfolio investors and investment advisors who want better stock ideas, to improve their stock portfolio performance. All of our stock selections are screened via strict fundamental & technical criteria, designed to maximize growth while minimizing risk.
It only costs $25 to join us for a one-week trial, to see whether Goodfellow LLC can help increase your capital gains!
* * * * *
Auto stocks are in the news today, due to higher-than-expected sales of pickups and SUV’s in May. I’m not going to recap the info — you can read all about it from Bloomberg. Rather I will give investors my opinion on what they should do with the stocks of some of the major auto companies.
You can see in my comments from my article at StreetAuthority today that I am definitely not bullish on auto companies right now.
“More recently, the stocks that are consistently ending up in my buy list include anything transportation-related (with the exception of automakers): airplanes, freight (trucking), railroads, rental cars and trucks, and even motorcycles.”
* * * * *
General Motors Company (GM, $35.13, up $0.26 midday) — There is no material change in GM’s earnings outlook, price/earnings ratio (PE), or dividend since I last wrote about the company on May 1. Earnings per share (EPS) are still projected to fall 1% this year. (Please read that article, TARP Report Reveals Gov’t & GM Screwed Taxpayers More than Previously Thought.)
All of my advice about the GM stock chart from March 29 and May 1 remains intact. If I owned the stock, I’d use a stop-loss order to protect my capital from bad news relating to recalls and government investigations. And I would sell when it rises to $37.25.
Note: The ex-dividend date is June 6. Investors who own the shares at the market close on June 5 will receive the next dividend.
Goodfellow LLC Rating: Sell near $37.25, Volatile, Public. (06-03-14)
GM data by YCharts
* * * * *
All eight 2013 & 2012 Goodfellow LLC stock portfolios
dramatically outperformed both the S&P 500 and the Dow!
View our outstanding 2013 and 2012 stock portfolio results.
* * * * *
Ford Motor Company (F, $16.55, up $0.11 midday) — Ford’s shares do not earn a buy rating at Goodfellow LLC due to high debt levels; and because EPS are projected to fall 18.5% this year. Investors cannot reasonably expect stock prices to rise when companies are not growing their earnings, and that’s why strong earnings growth is my first criteria when I’m screening stocks for possible purchase.
I discussed Ford Motor Co. on February 3. My opinion has not changed. At that time, I said, “The best it might reach in the short-term is about $15.80.” The stock then rose to $15.83 in early March, before having another pullback.
At this point, the stock could rise to October 2013 resistance levels around $17.75, but investors are gambling with an inferior stock. In order to minimize risk, I always encourage investors to stick with stocks that have strong projected earnings growth and bullish charts.
Goodfellow LLC Rating: Sell near $17.75, Volatile, Public. (06-03-14)
F data by YCharts
* * * * *
All stocks chosen via strict fundamental and technical criteria.
* * * * *
Toyota Motor Corp. (TM, $114.87, up $0.92 midday) — I last wrote about Toyota on March 20, and I encourage investors to review that commentary.
Toyota’s EPS are expected to grow 8% in 2014; then not grow at all in 2015. This is lackluster earnings performance, and not something that investors should consider acceptable when they’re searching for stocks in the hopes of achieving capital gains.
The more investors learn to rule out stocks with poor earnings growth, or high debt levels, or high PE’s, or poor stock charts, the more they’ll end up with excellent stocks that have every reason to grow, and deliver capital gains.
Toyota shares fell steadily for six months through April 2014. On March 3 I said, “Minimally, the stock should fall to $100 before it begins stabilizing.” The stock proceeded to fall to $103.38 about five weeks later, then began to rebound.
If I owned TM shares, I would sell at $116, and switch into a stock with strong earnings growth and a more bullish chart. I would expect my principal to grow more quickly in a healthy, growing company’s stock, rather than in a problem-plagued company’s stock, with poor earnings growth.
TM data by YCharts
* * * * *
* * * *
Investment Disclaimer Release of Liability: Through use of this website viewing or using you agree to hold www.GoodfellowLLC.com and its employees harmless and to completely release www.GoodfellowLLC.com and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment.
Recommendations are based on hypothetical situations of what we would do, not advice on what you should do. Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment.
The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. When information is provided herein from third parties — such as financial news outlets, financial websites, investment firms, or any other source of financial information – the reliability or completeness of such financial information cannot be guaranteed. The information contained on this website is provided for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities.
This is not an offer or solicitation for any particular trading strategy, or confirmation of any transaction. Statements made on the website are based on the authors’ opinions and based on information available at the time this page was published. The creators are not liable for any errors, omissions or misstatements. Any performance data quoted represents past performance and past performance is not a guarantee of future results.
Investments always have a degree of risk, including the potential risk of the loss of the investor’s entire principal. There is no guarantee against any loss.
* * * *
Goodfellow LLC is a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.