Three Stocks I Wish I Bought

A reader left a comment on my last post, the credit crisis of 2008, "How about a post like 'this is what I wish I could buy now.'" I'm always a sucker for requests like this because I like thinking about which companies I should buy when the market is down hard, and also I enjoy when readers make this blog interactive. Considering the S&P 500 index was up 10% on Friday, this post becomes "this is what I wish I had bought."

Husky Energy (HUSKF.PK) - Towards the start of last week, I thought Canadian oil and gas firm Husky looked pretty good at around $40. The stock was yielding 5% and oil is likely not going to $60/barrel for a sustained period. Since last Monday though, the stock was up over 16%.

General Electric (GE) - What a week for GE! Overall, this was the stock I was most attentive to throughout the past panic-filled week. GE traded as low as $22.16, where it yielded 5.6%. I already have a large position in GE, so I would have been hesitant to add to my position too much anyway. GE is now up 21% off of that low.

Sun Life and Manulife Financial (SLF) & (MFC) - Both of these insurance/financial firms traded down really low and were interesting to watch. I still really like insurance as an area to invest in, even after AIG's fall.

Everything else...
Let's face it, last week was out of control and valuations got ridiculous. Most stocks that I watch on a regular basis were really put on sale. There were exceptions though, as several stocks including the following, did not get my attention during the last week: Clorox (CLX), Procter & Gamble (PG), United Parcel Service Inc. (UPS), Johnson & Johnson (JNJ), Automatic Data Processing Inc. (ADP), Pepsico (PEP), Colgate (CL), Reitmans, and IGM.

Lots of volatility usually means long term investors can take advantage of some bargains. All of these companies pay growing dividends, so if you can buy them on sale you can enjoy a nice high starting point for a growing pay out on your investment.

Disclosure: The author owns GE.

Comments

[Tom B:]

I have some GE, but it worries me. I'm not sure how much financial exposure they have. I'm not selling, but NOT buying more, either.

2008 Sep 22 08:44 AM

[User 232593:]

woulda,shoulda,coulda.

2008 Sep 22 09:59 AM

[Norman Lepo...:]

I agree with the author and both comments.

2008 Sep 22 11:40 AM

[svosavvy:]

Yeah, I agree with all comments here except I think if the banking unit became leprous and fell off you still have a $20 stock here so I added to my ge position at $23.

2008 Sep 22 01:03 PM

[Tom B:]

"I think if the banking unit became leprous and fell off you still have a $20 stock"

I'm a long term holder by nature, so I'm not in a panic. I like the fact GE makes wind mills. I think Electric power and distribution is key to the electric/hybrid car future.

2008 Sep 22 01:41 PM

[svosavvy:]

(very) long term holder here too. I like their windmill business as well, and so does noble enrgy, boone pickens, and a host of others. Their jenbacher engines are the cats meow if you like burning things other than gas, there are a couple running on chicken poo. I see the recent stumbling as a nice place to buy more.

2008 Sep 22 07:56 PM