This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Bullish Stocks to Buy on the Next Dip

Apple's high per-share price holds it back and perpetuates the undervalued status. It's so silly on many levels. When you invest in a company in today's electronic markets, it makes no difference if you trade in odd-lots or not (an odd lot is a buy or sale of less than an even 100 shares).

A well-performing stock with a high per share price is even a better buy than the numbers otherwise indicate. Why so? Because it's well-known that stocks tend to move higher after splitting.

The logic is real, but it's based on irrational emotion. A company is not actually more attractive because the shares are more "affordable." However, because of the effectiveness, companies continue to use this old "Jedi mind" trick.

If Apple declares a stock split, expect a strong bullish reaction relative to the ratio, and for Apple to narrow the "true" relative value gap.

T Chart T data by YCharts

TheStreet's Christopher Versace's article on smartphones is a must read. (You need a Real Money Pro account to read, but Versace's analysis makes it worthwhile.)

AT&T(T - Get Report)

I have a secret to admit. I don't care for Ma Bell, and it dates back before cellphones became popular. Back in the day, when phones had "strings" attached to them AT&T held a strong monopoly and it acted like it.

With that said, I have no problems buying (or shorting) AT&T. My personal feelings don't receive consideration in regards to capital allocation.

AT&T traded lower Monday and Tuesday as of the time of this writing. If Wednesday is lower we are in "the kill zone" (thanks Oliver Stone). We can also see from last week's move lower that a buy after three down days is already a winner.

The price-to-earnings multiple already discounts AT&T growth, resulting in a free ride if the company's revenue continues growing. Earnings in 2011 are lower, but if you drill down to the quarter periods you can see the hit taken appears to be a one-time reduction.

Based on $2.40 in estimated earnings this year, AT&T is expected to maintain or increase the sky-high yield of 4.8%. Even in the turmoil that wrecked the financial markets, AT&T continued to increase their dividend. In the last five years, the dividend has increased by an average of 5.3% per year.
4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
GE $28.26 0.00%
JNJ $101.82 0.00%
LLY $71.27 0.00%
T $36.47 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs