Tanuja Gupta's  Instablog

This is the time to invest in both defensive as well as risky assets. There is lots of cheap money in the market. My stock picks are:

McDonald – right now trading at 62.64 months price target is $70

·         MCD had solid 3Q earnings beating expectation. There has been 3.8% increase in same-store sales on October 22 and reported a better-than-expected quarter.

·         International results have been solid and will be solid in coming quarter, as Europe and emerging economies Asia are coming out of recession at a faster pace.

·         The weak dollar is good for McDonald's substantial overseas business, and a recent dividend hike gives investors a 4% yield.

·         Q4 would benefit from lower commodity prices & weak Dollar.

·         Defensive stock

Amazon – trading 126, PT for next Q – 135

·         3Q results strong – 28% inc. in sales, profit up by 68%. 3Q surpass expectation by 10%. Actual revenue $5.45b vs. consensus $5.02b

·         Catalyst –

o   increase in media (17% YOY in #q vs. 1% in 2Q) and electronic goods sale amid a consumer recovery

o   Improvement in e-commerce environment.

o   rapid adoption of kindle both in US and other geographies

Netflix – Right now : $56, PT 12 months : $65

·         Anticipation of Streaming Pact With All Three Gamer Consoles: NFLX would announce a streaming agreement with the NintendoWii sometime before the end of 2009

·         On the heels of a powerful Q3, Netflix has revealed its next CE partner for Watch Instantly – Sony’s PS3 : With a US installed base of 9M and renewed momentum driven by a recent price cut, the PS3 should become a significant driver for new subscriber growth.