What I Am Buying Today.

[crimsonghost747]

(01-25-2022, 02:34 PM)stockguru Wrote: In regards to DKS

You cant base on where the price was a year or 2 ago. DKS is way better positioned now then it was. And growing much faster. I'm I can get a company less then a 10 PE and growling at 20 % clip to me that represents value.  2 years ago the PE was 60 now it's9. If I looked at stocks solely based on how much its up that's not a good formula to use. As long as the story hasn't changed and they are growing earnings year after year with a reasonable PE there's no reason not to own it. I bought it at 69, 72, $87, 92, and $97. Its now crosses the 50 MDA. Not many stocks can say that currently lol

And like Fenders said. No one can compete with them in the US. They already put 2 other sport retailers out of business. The CEO is fantastic.

And you just bought LHX which has run from $168 So your not practicing  what you preaching lol

This is exactly my point. Obviously you can't only look at the chart to determine valuation but it is a powerful tool to be used together with other information available. Unless something truly remarkable changed with a company, to justify a massive run up in price in a short period of time, then I'd wager that it was either undervalued previously or overvalued now. 

DKS was a random example, and may have been a bad one if they have truly executed a massive turnaround. But I'm pretty sure the recent run up in the stock market in general is more due to monetary policy rather than pretty much every company becoming significantly better at what they do over the course of a year. 

But your buys of DKS are exactly how it should be. Looks like you bought when the value started to get unlocked, whether it was due to previous undervaluation, better company performance, or just current overvaluation, you got in at the right time. It was a great deal when you bought it, but it's 50% higher now. Is it really a great deal anymore? 

Exactly the same with LHX. As I said, it's not a great deal. It's a great company, but $217 is NOT a great price for it. I buy something pretty much every week, no matter what the market says. And right now I just don't see quality companies on the cheap, so I prefer to go with a super high quality company at an ok-ish price. 

Besides, fenders is right, I need my regular fix of "merchants of death" stocks.