We all know that when a company misses their numbers and guides lower, their stock goes down. Conversely, when a company crushes the consensus, and ups their guidance, the stockholders should be rewarded, right? Not all the time, especially in a topsy-turvey market like we have seen in the past three weeks. Don’t panic and don’t forget that you make your money going in and not coming out. In other words, downturns in the overall market, that cause perfectly good stocks to retreat is a buyer’s paradise. Let’s recap my latest picks since my last update on February 1st.
General Electric (GE). One of my first picks from last year (at $11.62), it was $16.40 when I told you to stay put in February and it saw $19.80 recently, before retreating back to $16.95. I’m not overly concerned, so hold it for now, but of you see $19.80 again, sell at take your 70% return.