Tuesday, February 14, 2012

First Monster Portfolio Purchase Of 2012

Welcome back everyone!  I made my first purchase of 2012 in my Monster Portfolio. And the winner is Weatherford International (WFT).  I had the day off from work today and was able to buy some WFT on weakness.  I have watched this stock rise and rise through the month of January and I decided to get in on the action! 

Weatherford reports earnings next Tuesday 02/21/12 and I plan to utilize this day to try and make some money.  2012 will be another solid year for energy stocks and I ran the numbers on WFT and from the projected 2012 EPS this stock should be trading near $25.00 by the end of 2012.  Currently WFT is trading around $17.25 a share.  From the numbers I believe WFT has the potential to go much higher! A potential return in excess of 40% by year end. Obviously, this is based on projections, but if I'm half wrong this stock will be trading at $21.00  a share.  I'm sure everyone wouldn't mind a 20% return on investment.  That being said I bought a small position today at $17.27 a share.  This stock has run up huge, but I still have plenty of money to spend if this gem heads even lower. 

Also, I purchased some Caterpillar (CAT) today in another account.  I mentioned last week that a good starting point to buy would be between $105-$110 a share.  I'm not sure it will get there!  I did a some more research and I uncovered that an insider purchased 1,000 shares of CAT stock back on 02/07 at $113.05 a share.  This changed my mind!  Large insider buying is added confidence that this stock will go higher.  As I always say insiders buy stock to make money just like us.  That being said I purchased some CAT stock at $114.06 a share.  I ran the numbers and this stock should be trading north of $140.00 a share by year end.  Another potential return in excess of 20% Bring it on!!!!!!!!!!

Clay-

P.S. Apple closed at $509.46 a share. (52 week high) LOL!  So much for buying this stock at $435 a share.

Full Disclosure

Current Holdings:
Cosi Inc. (COSI)
Caterpillar (CAT)
Procter & Gamble (PG)
Weatherford International (WFT)
Kinder Morgan Energy Partners (KMP)

2 comments:

  1. Cat might split before $140. I also think that you are right about WFT and I will get more. I was trying to wait for a pullback on WPRT. But it is relentlessly going higher.

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  2. I just think Cat will split before it gets to $140. I do agree that WFT is a good buy. I am going to look into HP.

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