NEW YORK (TheStreet) --Since May I have been suggesting investors book profits on stock market strength to raise cash to at least 50% of assets that they would normally have invested in stocks.
A portion of allocations to stocks should be buy rated components of the Dow Industrial Average including; Cisco Systems (CSCO) and Intel (INTC) have recently been upgraded to buy from hold, while General Electric (GE) and United Health (UNH) have recently been downgraded to hold from buy, according to www.ValuEngine.com.
Before I provide my "buy-and-trade" parameters among the buy-rated Dow components, it is time to book profits on Boeing (BA) ($132.73), which was recently downgraded to sell from hold. The aerospace and defense giant spiked to an all-time intra-day high at $142 on Nov. 18, prompting the downgrade. My quarterly value level is $115.10 with my monthly risky level at $140.46.
Cisco Systems ($20.91) reported disappointing earnings on Nov. 13 and the stock fell from $24 to $20.77 on Nov. 14 and on this weakness was upgraded to buy from hold. Cisco is one of the 16% of all stocks that are undervalued, as the stock is undervalued by 1.6%. The stock has a 12-month trailing P/E ratio of just 11.0. My annual value level is $17.77 with a semiannual pivot at $22.39 and annual risky level at $22.76, and its 200-day SMA at $23.07. This stock is not a bubble stock as it is well below its 2000 high above $75.
General Electric ($26.45) set a multi-year intra-day high at $27.50 on Nov. 18 and was subsequently downgraded to hold from buy. The stock is 30.1% overvalued with a monthly value level at $25.69, a semiannual pivot at $26.68 and quarterly risky level at $28.47.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV