Doing better...

Last post was talking about all time high S&P500 at $181, and as of last week it was trading even higher at $201! Following conventional wisdom, I have been waiting for pull back for about 2 years now. Looks like it is not happening any time soon.

Going to back for a quick check on AAPL, it is now trading at $99(after 7:1 split, so around $693 before split). There is a new product announcement this week, possibly a large Iphone or may be even an I-watch or some health monitoring device, who knows. But is trading at reasonable valuation with P/E of 16 but the market cap is way too high:$590billion ! In my opinion the chances of AAPL going much higher is limited. Most likely they will continue to do well but will not to be able to charge premium pricing for I-phones or the new devices, just feel it is too big for high growth. There is a 2% dividend and >25% operating margin. They could potentially provide a stable return for next 5 years.

I am looking at PNRA, trading at $155, close to 2 year low. P/E is not too low at 23, it is purely a technical trade, chart is showing higher lows and it has crossed 50-day moving average. Their same store sales has been declining. While MCD is also having the same problem, I feel PNRA is in better position just because the whole perception of MCD being junk food and move towards eating more salads or less junky food.

SWKS has done very well in the last year or so. It is now at $56 and has doubled in the last one year. Earnings are growing at 30% yoy and P/E at 33 is not too high for this earnings growth. With growth in 3G and 4G devices across the world and new IoT (internet of things), there is a growing need for RF/analog components sold by them. I sold it too early but planning to buy some and hold on for 3 years. They are expecting earnings of $5/share, so stock could potentially double from here. Will have to wait and see.
Pretty much given up on AMD after 2 bad quarters. Stock is still doing ok but decided to get out of it.