Bulls have seized momentum, but Richard Suttmeier sees little upside now, with "a lot of good...

Bulls have seized momentum, but Richard Suttmeier sees little upside now, with "a lot of good news priced in" - QE2, the GOP midterm victory, the tax-cut extension. "All the bullish events are there," with 2011 no better than a "trading-range year." He would buy undervalued names CSCO and BBY, and sell overvalued stocks like F, TRW and FWLT.

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Comments (10)
  • TKO
    , contributor
    Comments (156) | Send Message
    So basically, a commentator who makes his name by providing opinions on directions is claiming "This is a market to buy and TRADE, not buy and hold"...


    Also, he continues to provide bearish (sometimes bullish) opinions and then retract them.


    I'm sure he's a smart guy, but seriously...


    The only real thing I can take away from this is that, he is slowly changing his stance from bearish to somewhat neutral... until he's fully bearish, there might be more room to run.
    17 Dec 2010, 05:39 PM Reply Like
  • kmi
    , contributor
    Comments (4758) | Send Message
    Let's see wasn't '10 supposed to be flat and trade sideways too?


    I suggest my fell SA readers trade based on their own analysis and convictions....
    17 Dec 2010, 05:50 PM Reply Like
  • David J Cohen
    , contributor
    Comments (22) | Send Message
    F is overvalued? oh really? PE Multiples of 9.4 are overvalued now?


    And he suggests buying two stocks which just got hammered after an earnings report (CSCO, BBY)? And both have higher PE multiples than ford.


    Somehow I doubt this guy makes much money.
    17 Dec 2010, 09:02 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
    David J Cohen,
    I agree just because Ford has gone up over 15 times and TRW about 30 times from their lows does not mean they are overvalued.


    It does not matter where they have been, only where they are going.


    Both Ford and TRW have forward P/E's well below 9.


    This in an industry that continues to scrap more cars than is being built every year.


    If the production of cars even eventually catches up with the scrap rate, as well as Growth in Asia, these stocks can easily contunue to both grow earnings as well as reduce debt from here.
    18 Dec 2010, 09:47 AM Reply Like
  • RK
    , contributor
    Comments (399) | Send Message
    Not to sound too disparaging. Most analysts' opinions are really not worth very much. I trust people who run other people's money way more. Sure, these people can talk their books. But we know they would lose their jobs if they screw up with their buys and sells. These people need to be right, while analysts are way less accountable. Buy CSCO? That has to be a joke after the company whiffed so badly last quarter. That company is not safe to buy until it puts up a decent quarter.
    17 Dec 2010, 09:13 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
    TRW, Ford


    18 Dec 2010, 02:16 PM Reply Like
  • zorro2828
    , contributor
    Comments (740) | Send Message
    The guy is on crack .. F will eventually be back at $40 and I expect 20 - 25 next year.. Al is doing a great job with the turnaround, they have great products and they are reducing debt .. rating upgrade in 1st quarter will mean Millions in savings that will go straight to the bottom line... CSCO and TRW .. are you kidding me? Stick with F folks and atleast get another double!
    19 Dec 2010, 01:13 PM Reply Like
  • gordon 8
    , contributor
    Comments (32) | Send Message
    F is producing a better product than the other gov't and union owned entities, however, they are faced with an AFL CIO negotiation in 11' that could increase their labor costs disproportionately to the Chrystler and GM.


    Hard to imagine the gov't or unions being self dealing..... so this is a threat to Ford's continued profitability next year. Industry over capacity should also offset any profits from their market leadership.


    20 Dec 2010, 02:45 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
    Let's see Dec 17 Ford share price 16.80, now 18.65
    Dec 17 TRW share price 52.40 now 60.22


    That should teach one to listen to these idiots
    14 Jan 2011, 04:58 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
    Dec 17, 2010


    TRW, FWLT overvalued.


    CSCO, BBY undervalued


    15 Feb 2011, 07:41 PM Reply Like
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