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+--- Thread: Ideas for the Roth (/showthread.php?tid=462)
Ideas for the Roth - Jimbo - 03-27-2014
Hey all, been watchin here for a little bit, new to the site but love the input and ideas.
I am 52, have a company 401k that i max out, have a IRA with the following
2 mutual funds
AApl 20
COP 50
GE 420
HCP 50
KMI 50
MRK 50
PFE 50
T 175
VZ 75
Have a Roth that has had to sit on the back burner due to lack of funds but am now putting monies into and trying to build and have the following
ARR 50
FTR 200
MSFT 50
NLY 75
SO 50
T 50
Looking to add to this and would love your ideas on the following, PG, KMB, TGT, O, OHI, LO, PM, WM.
What do you think or maybe some other suggestions.
I just learned (am learning) the DRIP and am changing most of these existing to DRIP.
I have two boys that have their own accounts that I have managed and been quite successful with AAPL, MCD, ORCL, and LU along with a few others, this has been able to pay their 4 years of college.
Any ideas or suggestions would be appreciated. and thanks for the help.
BTW, this is an awesome site.
Jimbo
RE: Ideas for the Roth - EricL - 03-27-2014
I like your new picks and own TGT, O, OHI, LO and PM.
From those I like OHI at current prices and also think PM will be a great long term holding. I like LO but it has some risk with lack of diversification as it relies mainly on menthol cigs.
Would consider MO instead of LO based on its large SAB Miller holdings. Tim McAleenan wrote a nice article http://seekingalpha.com/a/1987n on it the other day.
I also like CVX and PSX for oil plays and I think the railroads will continue to do well. I own UNP and NSC and think CSX is also attractive at current prices.
KO I think also looks pretty good as its currently yielding about 3.2%, which is higher than it normally trades at.
All in all, I like your picks!
RE: Ideas for the Roth - Be Here Now - 03-27-2014
I have 2 suggestions for your Roth.
The first is to sell FTR.
Morningstar rates its fair value as its current price. It has a narrow moat, its fair value uncertainty is high, it gets Ds for both growth and profitability, and its S&P credit rating is below investment grade at BB-. FAST Graphs shows a dismal past and an unpromising future.
[attachment=49]
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The second is to buy KMR. The Kinder Morgan complex is currently out of favor, and all of the Kinder companies are selling at depressed prices. This is an excellent time to get a bargain.