Stock Talk - Jeff Reeves, InvestorPlace.com
Feb 22, 2012|
Jeff Reeves from InvestorPlace.com gives us some stock picks? Is Caterpillar a buy? Thoughts on GM as well!
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
It is time for stock stock but as the market made any moves one way or the other jitters it's still. In the end decided and that's adds added gamble this game that yeah I hit it on the front. Well it is and rolled the Dow's down twenty points -- the NASDAQ is now down nine the S&P 500 is down three to thirteen 59 -- treasury. Sitting at that market's been sitting here for like two days a 2.0 31. Gold is down three dollars seventy cents an and you have oil down sixteen cents but the bad news is it is trading at a 106 dollars and eight cents a barrel. -- our next guest is Jeffries from he's the editor in investor place dot com Jeff welcome to the show are you Dylan. Have you read -- let's talk about three different stocks today. First one on your list is one that I own I'm pretty sure -- personally but I also -- it in my client portfolios I've been buying this stock for years. Caterpillar is the name of the company in the symbol CAT. What do you think a cat apparently -- buy hold sell. Are -- by category I think you're Smart to get it because -- one of these stories that. You know it's really a secular growth story picked it accompanied it really knows how to cash in on businesses that are gone anywhere and -- construction machinery one of the things I'm most. Kind of policy by caterpillar that actually had mine equipment and especially you know without these emerging markets trying to get. It into rarer than gold and focus right now the mining industry for copper. Back to get a pretty good rap industry compatibility couple that would kind of a broader. Recovery and I'm not going to be -- everything's coming up roses but technical details have been very brisk I think it is a really good long term play for people who are kind of looking at growth over time for the portfolio's. How did they do with the emerging markets do they sell a lot of their products to China India Brazil. -- -- -- -- Brazil -- a lot of these kind of Latin America. Regions are very important -- -- to me it's not -- as people shouldn't think -- because that he caterpillar machinery of the road America that that's -- they do they do a lot of instructors equipment abroad and it's probably now I mean in -- different without the industry's been building for a long time -- there are -- in the bubble over there but you know the construction equipment they didn't make it's time world class. So they they're basically everywhere mining operations in Australia and South America construction abroad in Asia. So they really have a diverse revenue stream and that's another reason electric company. All right let the General Motors in LA it's another company get a lot of headlines. You know he did their IPO last year. And I I I don't own a General Motors car beat -- on -- General Motors I don't know it what do you think it General Motors Geoff. I'm public that there are excellent idea you know they're they're really -- -- a lot of people enthusiastic but you look at the details is cause for concern because it actually other growth came from North America which is very surprising to me. On the European operations Europe is obviously not very good shape right now with that crisis. They operated a lot in Europe and along the top of America that's not very encouraging to meets a PGA on this so panic on back some of the markets are they law what you said they went public -- -- to get out from under the car out of bankruptcy so these genes in North America I don't really believe that gains it is kind of getting back to where they were it would consumers are trying to get the reputation back -- that's not necessarily grow its gonna be able to last. For years. I mean. Other artists on the ball in a lot of trouble there's also slowdown in China there's growth there but it was only 2.5 percent for all of 2011 that's partly to breakneck. China auto market that a lot of I think Detroit automakers are depending on. I think end badly and -- and travel. You know domestic sales of the wall in China and therefore it's so I think it's -- imposed greater example present their their political record profits that -- topic the last. Right now Jeff I'm guilty of having idolize Steve Jobs and when he died. You know I I became bearish on Apple Stock what is your opinion of Apple Stock at 500 dollars 511 dollars a share. You know I mean it's not crazy I mean I I typically go after market you can -- either quit you can write an article about -- apple and I seriously look at it every fourth bye week and I cannot find the reader will greet my people should salvage company I mean. The bottom level to get on real unreal electorate in support 418%. Profit growth you gotta be kidding I don't know how a company that size. He used to do that. Granted the growth rate may blow the captain with its dominance with a brand. The markings are off the chart apart completely and I doubt that -- and that Foxconn there's a big accidents began at the top spot on something like that. There are issues that apple has any company that side is gonna have it's gonna have to look over -- at the competition but it's really hard argued. Wouldn't except in the dominance of Apple's product if you look at the company it's actually care affordable product forward and -- not like after the break neck growth it's like it and gone nose bleed valuation it's actually pretty fairly valued especially if you back -- the mountain of cash they had. So it's hard for me to be I mean -- -- everybody in the Brothers lost on apple but I mean. -- certainly look at it and a couple weeks and I can't find a reason -- -- that you got three about it. Do you think they're gonna pay -- dividend. Well I mean a lot of people that I but the fact of the matter is that apple pistol -- itself in -- those innovated company they think he could spend its money on itself spotted making its money back shareholders. It's got to prove that like the iPad. I I don't know if they need as much money is to have that -- selected times today. -- we can impact in ourselves better than he's given back to shareholders so far they've been put it right on that on the but it didn't really have. Problems finding demand for their shares up on arguably -- and they're gonna give money back to shareholders. All right -- I appreciate your joining us Jeff appreciate your time thank you. Those Jeffrey's editor of investor place dot com joining us today on the financial exchange.