Tuesday, June 01, 2010

BAGAKOAA June 1, 2010 A triple play, AAPL, MSFT, and HP


June 1, 2010 A triple play, AAPL, MSFT, and HP

OK, I can’t really say I paid too much attention to the market today as our CIO had me locked in a room for 5-6 hours talking about our 2011 budget needs. Needless to say I was less than amused to see the S & P down almost 19 points and the Dow taking another 112 point hit.

In trying to find out the cause the reasons were a bit weak. China, whose GDP was heading toward the double digit stratosphere was cooling a bit and that put the whammy on any positive news in the market. Then our very own ISM, (Manufacturing sector index) came in a bit weak. Positive news like AAPL selling more than 2 million units in its first two month did not help the market and even only had small marginal influence on Apple. In a shift to chase IBM, HP changed its strategic course to stop relying on the commoditized pc market and boost its service sectors.

And that was the bad news. If you read the notes to what HP is doing, it makes sense. When you add that commentary to the great article this weekend in Barron’s asking why choose between MSFT and AAPL, buy both. I suggest considering all three. As long as you balance this sector with other categories, (Banks, energy, industrials, retail, and speculative) It is a sound play in the next 12-18 month.

Note that the Salve Lucrum Portfolio owns AAPL and IBM not HP, YET.

We mentioned the great report out of UBS concerning the water stressed market opportunities. In doing research, I mentioned Badger and Itron. We bought BMI today and added to it when the market came down a bit. In other SL action, in after hours trading we bough more CVX, C, BAC, FLS, FAUNY, CAN and ARMH. (Yes that is the same ARM Holdings we did wo well on until the flash Crash. We are back in below 10 with a 13-15 in out sights.)

Other than that it was a very quiet day in Salve Lucrum land.

Salve Lucrum


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