The Buy List Strikes Back

Today was a great day for the stock market and our Buy List. The S&P 500 jumped 2.25% and our Buy List gained 3.08%. That certainly takes some of the sting off yesterday.
Let me run down some of the stocks on the Buy List. Perhaps the most mysterious is that Moog (MOG-A) soared over 9% today. I like this stock as much as anybody but I have no idea why it rallied so strongly today. The company will report earnings next Friday.
AFLAC (AFL), I’m happy to see, also had a very good day. The shares got as high as $49.92. AFL hasn’t been over $50 since early May. Earnings are coming out on Tuesday.
Leucadia National (LUK) was up about 7% today thanks to GM buying AmeriCredit (ACF).
Only two of our stocks were down today, Johnson & Johnson (JNJ) and SEI Investments (SEIC).
There were three earnings reports today. Perhaps the most impressive was Eli Lilly’s (LLY). The company reported earnings of $1.24 a share which was 14 cents better than consensus. The best part is that they raised their full-year adjusted EPS forecast to a range between $4.50 and $4.65. The stock currently yields 5.6%.
Baxter International (BAX), which is my worst performing stock this year, reported earnings of 93 cents a share which is a penny more than the Street’s consensus. For the third quarter, BAX sees earnings of 96 cents to 99 cents per share which is in line with forecasts. For the full year, they expect earnings to range between $3.93 and $3.98 per share. That’s not bad. The stock climbed 3.5% in today’s trading.
Finally, Reynolds American (RAI) reported earnings, after charges, of $1.32 per share which is two cents more than expectations. They also raised full-year guidance. Reynolds expects earnings, sans charges, to be $4.90 to $5.05 a share, up from its previous forecast of $4.80 to $5.00 per share. The shares hit a new 52-week high today. The higher guidance tells me that the dividend is safe. RAI now yields 6.4%.

Posted by on July 22nd, 2010 at 6:07 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.