5 Desirable Growth Stocks

Jun. 09, 2011 1:23 PM ETAAPL, BA, CAT, JPM, KKR12 Comments
John Tobey, CFA profile picture
John Tobey, CFA
1.25K Followers
About 20 days ago, I wrote that a “Stock Market Buying Opportunity Could Be Coming” and that “5 'Special Situation' Growth Stocks” could become attractively priced. It looks like we’re now there. Below is the updated information for the five stocks; I have updated each of the graphs. Interestingly, this has been a good news week for each, yet the prices have declined with the general market.
Apple (AAPL) is the one stock that didn’t get down to the buying area I identified, so I raised my buying level to around $330-335. My reasoning was that the WWDC (Worldwide Developers Conference) announcements – and the analyst reports that followed – were so good that the stock would likely not sag. (Here is Fortune’s analyst summary.)
[Click all to enlarge]
Apple stock chart
Boeing (BA): The Wall Street Journal discussed airlines’ need to improve their fleets’ fuel economy. With recent capital spending at a decade low, “The stage is set for a wave of replacing older planes in developed markets, to complement the continuing growth of fleets in developing markets.”
Boeing stock chart
Caterpillar (CAT): The dividend was raised two cents per quarter (the same as last year), and there was no split announcement. The important news, however, was the CEO’s annual meeting announcement that the company’s positive outlook is being maintained.
Caterpillar stock chart
JPMorgan Chase (JPM): “Rivals Are Restless Over JPM's California Dreamin'” discusses JPMorgan’s expansion into the California market. In the excerpt, note the “competes hard but not recklessly” description – just what we want from a growing bank.

JPMorgan Chase competes hard but not recklessly, something that could not be said of Wamu, the failed Seattle thrift company it took over in 2008, they say. One point of agreement: JPMorgan Chase's California ambitions cannot be ignored. It lacked a retail presence in the state before buying Wamu. Now it

This article was written by

John Tobey, CFA profile picture
1.25K Followers
I am the founder and editor of Investment Directions. My career has been managing and consulting to multi-billion dollar funds. Using the widely accepted “multi-manager” approach, I have worked with top investment managers throughout the country, gaining a high level of expertise. My career has spanned many market environments, and I have hands-on experience searching out opportunities and avoiding risks in all of them. I now devote my time to Investment Directions, with the goal of helping investors further their understanding and improve their investing skills. I am currently serving on: The AAUW Investment Advisers Committee and The City of Vista Investment Advisory Committee.

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