Will the Rally Continue for Starbucks? What should be Your Strategy?

Starbucks (SBUX) is definitely a stock worth looking at despite the fantastic rally over the past five years. It’s a good growth story to bet on for the long term; however I don’t like their net profit margins that stand around 10% at present. Even their dividend yield of around 1.20% isn't really attractive. The most promising part of their business is that they are still expected to grow above 20% annually for next five years. Even its annual sales are expected to rise to $17 billion by 2015.
But, despite such a rosy outlook, the current valuations look a bit stretched. Its currently trading around 33 times price to earnings, has a price to sales ratio of around 2.90 and it price to book ratio nearing 10 times is simply beyond investors comfort level. So, purely on fundamental basis it’s looking expensive around current price levels. Now, let’s see where it stands technically.

Why Should You Invest in Walt Disney?

Walt Disney (DIS) has been around since our childhood days, but now it’s a completely different company. Over the decades Disney has diversified their business within the consumer services space and at present they have over 166k employees. Even from an investment point of view you ought to love this company, just like old days!
They have a strong presence across media and entertainment space through their five key business segments.

Thinking of buying Priceline Stock? What’s your Excuse?

Five years ago Priceline (PCLN) was a mere $50 stock, and now it’s threatening to break past $1000 level. Even more surprising is that this stock was trading around $1000 mark in 1999 soon after its IPO, and then dipped to as low as $10 in the following years. I usually don’t question markets wisdom, but this sort of price action clearly reflects deep rooted ignorance and stupidity among analysts, market gurus, traders, investors and money managers. It seems that almost every single one of us is short sighted, and the worst part is that the success of a listed company largely depends on us. Well, my rage is justified as we still haven’t developed an efficient marketplace, and this will become the reason for the death of the retail investor. Anyhow, you are not here to listen to my overflowing expressions of mindless thinking ;)

So, let’s look at the chart and see where Priceline could be headed next? I also went through detailed fundamental aspects and made comparisons to its competitors. You can have a slice of all that along with a few mindless notes after I cover the key technical observations in the first half of this analysis. (Click on the chart to enlarge)

Buy, Sell or Hold Home Depot? Is the Momentum Dying Already?

Home Depot (HD) has gained the status of being a market and economic bellwether in the recent years. But this time around it is appearing that the stock might lose some ground in the short term.  It has been trading above its 50 day WMA consistently since December 2011. However, in the recent trading session it’s the first occurrence when it has come down to test this moving average. It has also broken below its long term trend line, which it had respected on closing basis so far. Now, the first line of support comes around $69. So, what should be your strategy on Home Depot?

Key support levels for Home Depot (HD)

Buy, Sell or Hold Tesla Motors? Whats the Confusion?

Tesla Motors (TSLA) is a leading innovation driver in the auto industry and its electric cars are definitely picking up pace with consumers. Its no close to the might of Ford (F) or General Motors (GM), but it’s definitely up to something. Its stock is zooming at a throttling pace almost like an up-cliff climb. No wonder high conviction short-sellers are in vain. Earnings growth has been stellar this year, but we should not expect earnings to grow more than 20% per year for next five years. Well, there is no point in talking about valuations right now as the rally in stock price is totally led by sentiment driven momentum.

Cisco’s Trend Analysis & Price Forecasts for 2015: Can it Really Double your Money?

Cisco's (CSCO) lifetime stock chart looks very much similar to that of Microsoft (MSFT). We have discussed the possibility of a very major breakout in Microsoft in a recent analysis. Cisco is currently trading around $24 and it looks like it might take support on the green trend line a tad below current price. Please read the analysis for a better understanding of the chart plotting.

Why Cisco looks attractive for long term investors?