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Now the C's
14. Nope, the market hated Intel (INTC). Nothing it liked. Didn't like personal computers. Didn't like the plans to get rid of extraneous businesses. Didn't like the fact that the company is actually predicting a good year but nothing that can't be beaten, for once. Its biggest issue: a huge number of upgrades going into the quarter without an upside surprise. We bought yesterday for the trust. Why not? It is de-risked and yields a very safe 3.65%.
15. Did anyone even care that McDonald's (MCD) disappointed AGAIN? I can't think of a reason to buy it at $93, but nobody seems to be able to find a reason to sell it, which is perhaps because of its above-average yield. McDonald's is always one quarter's worth of good numbers away from $100 and that's how I would approach this stock.
16. When I went over AT&T (T), I have to tell you that I was pained to think that it was nearly as bad as the naysayers on the conference call thought. There's no worry about the dividend here, given the bountiful cash flow, but management seemingly couldn't convince anyone of that and that's why the stock has been a huge bust. But it's the highest yielder in the Dow at 5.5% and I didn't hear a thing that made me feel like it can't boost that dividend. Yes, there could be some M&A here with Vodaphone, but the growth that would come from that acquisition would send the stock higher, not lower.17. I am giving Boeing (BA) a C because the guidance was so horrendous. But people expected much more, hence the decline to $129 from $144. When I listened to Doug Parker, the CEO of the new American Airlines (AAL) last night, I know it would buy every plane it could get its hand on and Dave Cote, the CEO of Honeywell, which makes the cockpits, said business is nothing short of amazing. I think this guidance was UPOD at its best and nothing more. Yep, Jim McNerney is under-promising and he will now over-deliver, so it is a buy. The Lone D 18. This leaves us with IBM (IBM). This was just a nasty, no-growth quarter with only one thing going for it: I didn't hear anything about Warren Buffett bolting, even as I think he should. The company's doing some restructuring and I think that it has plenty of buyback in it. But even at $176, down from $192 before the quarter and $215 from a year ago, this one's not a keeper. A D headed to an E, not a B. So, we have 8 As, 5 Bs, 4 Cs and a D in an average that has fallen 5% since the year began? I think down 5% is pretty much enough punishment for that report card. There are individual stocks that could suffer a little more, but I think that the companies overall are doing better than the report card indicates, yet their stocks are worse. Perhaps it's time for a bounce. Makes sense to me.
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