Ok Good

May be for the first time in many years of random trading, I thought some of the stocks were cheap - http://ideasinca.blogspot.com/2011/06/clueless-as-always.html - and bought them because of that. The list has done very well - MSFT jumped to $31.5, with P/E of 11.4 (from $24), MRVL has had less upside to $15.5, with P/E of 15. AAPL as always defies logic (trading at $630 with P/E of 18) and I realized I should not using AAPL stock to learn about trading. It is one of those outliers and any knowledge acquired from that cannot (and should not) applied to other company stocks, where regular folks like you and I work. AAPL probably employs some alien species which has had some time travel experience, to know exactly what consumers would want in the future and deliver those products. Others like NKE have done pretty well too - trading at $110 with P/E of 23. But I am less comfortable with NKE with rising costs, may it is the Olympics effect driving its stock price.

Ok good, where do I go from here ? I would still stock to MSFT and read somewhere that Mr.Buffet's firm has bought some INTC stock - trading at $$28 with P/E of 11.7. I have one more stock that I like DECK, it has fallen from $100 down to $64 with P/E of 12.5. And CY has had 30% pull back to $14.6, though P/E is on the higher side at 16. Lastly BRCM still seems to be good at $37 with P/E of 22. Now we should compare this to other stocks say like KO which has P/E of 20 at $73 or JNJ which has P/E of 19 at $65. With those comparisons MSFT and INTC do look cheap.

One note, I though I will never see a stock with P/E less than 5. But that wish has been fulfilled by F trading at $12.5 and P/E of 2.5 :) and closely followed by RIMM at $12.6 now with P/E of 5.7 !! Talking about low P/E beaten down stocks, look at JPM at $44, P/E of 9.9 with 2.7% dividend yield !! It has gone by 50% recently. I know nothing about the banking business - but this seems tempting to buy.

Lets us see how these things play out in the next few months..