View Full Version : Help with Blue Chip Stock Picks

02-08-2011, 09:03 AM
I'm a first time stock investor and am looking for input on some stocks. I'm interested in an oil stock first off, seeing as it doesn't seem we're going to get off our dependence on oil anytime soon. Shell Oil looks really good to me with a 5% dividend, but it seems that Chevron is much more popular with investors with its' three percent dividend.

Microsoft looks like it has a really nice value now, what are the pitfalls for this stock? Is it just an older company with slow growth prospects at this point or anything more sinister?

Being that I'm not going with a mutual fund, I want a food company for some diversification. Kraft looks good at first glance with a 4% dividend and good P/e but seems to have a lot of debt. What do you guys think of Pepsi vs Coke? Also some possible interest in McDonalds.

Being that most of my investments (all actually) have been in metals so far, I was thinking investing in ADP (the payroll processor) might be a good hedge. If interest rates ever rise in the US, they stand to benefit, but I keep hearing about them on MSNBC, and their stock stands near record highs at 20 P/E, so I think I may be late to the party on that one. Anyone with insight on this stock?

I know I have a lot of questions for one post, but feel free to answer just what you have knowledge or time to respond about.

03-04-2011, 03:38 PM
Big Oil is a challenge, you have to know your gaols. In the last two years I have made a LOT on LINE, DNR, SU, and SJT. Big is not always better, it depends on what sub-theme you want. I chose mine two years ago based on domestic sources being better than international. With Egypt and Libya and Nigeria in the news, I look like a genius. I also like secondary recovery, as LINE, DNR, and SU. The sub-theme is important in oil/energy. I have some other energy stocks too, CHK, LTBR, CCJ are the techies.

PEP vs KO, which one do you drink?

Kraft has been dead money for a long time, no end in sight. I don't like any food companies in mega-inflation environment. But I could be WAY off base.

MSFT has been dead money for a long time too. I don't see any technology driving growth, unless you love the new xbox gadget. They are me too playing catch up in search, phones, tablets, and anything important. Tech is tricky, but goes thru cycles where the big boys are cheap. The only tech stock I own now is INTC, and mostly for the dividend. They are so big they can buy growth if they don't get stupid. And they are a solid cash machine for long time to come. McAfee may have been stupid, we shall see.

What do you KNOW? Trying to outsmart wall street is hard. You should focus on areas your know. If you are a farmer, look at farming-related companies (seed, ferts, tractors) . If you are a cab driver, car companies (and maybe Garmin). get it ?

Some stocks I dont own that are on my short list now:

MMM -see this weeks Barrons.
AUY - Buy at $12
VTR - Buy at $50