Don’t Miss These Deals Left Behind by the Rising Market: Ford Motor Company (F), Corning Incorporated (GLW) and More

Page 1 of 2

After recently touching 5 year highs, the market may be heading towards overbought territory. According to S&P Capital IQ’s chief technical strategist, Mark Arbeter:

“These types of moves can get very overbought, but we think it’s best to just hold your nose, enjoy the heights, and wait for a series of negative divergences on the momentum charts… Many times, during strong advances, the peak in daily momentum is followed by a peak in prices weeks later. In addition, it seems that many are sitting on their hands waiting for a pullback, especially with the S&P 500 challenging the big round number of 1,500.”

Ford Motor Company (NYSE:F)Even completely ignoring charts and looking at fundamentals, it is not hard for me to notice that most of the stocks on my watch list have run up significantly just in the past couple of months. So should investors sit on their hands and wait for the elusive pullback, or possibly even sell? Or, should we listen to some advice from Ben Graham, who stated:

“The one principal that applies to nearly all these so-called “technical approaches” is that one should buy because a stock or the market has gone up and one should sell because it has declined. This is the exact opposite of sound business sense everywhere else, and it is most unlikely that it can lead to lasting success in Wall Street. In our own stock-market experience and observation, extending over 50 years, we have not known a single person who has consistently or lastingly made money by thus ‘following the market.’ We do not hesitate to declare that this approach is as fallacious as it is popular.”

Here are some companies that Mr. Market may be offering to us cheap- even as the volatile market seems to be moving up, up, and away.

Apple Inc. (NASDAQ:AAPL) isn’t rotting

I may be beating a dead horse here, but Apple really is cheap at todays prices. Even if Apple has shown some signs of slowing down, for it to trade at a forward P/E ratio of around only 9 is a little ridiculous. The stock has fallen from its high of around $705 rather quickly, and could be approaching a bottom. The company has also begun to pay a dividend, which offers investors a decent yield of around 2.4%, with plenty of potential to increase it going forward. Apple may have been pushed off as king of the market cap hill by Exxon Mobil Corporation (NYSE:XOM), but that doesn’t change the fact that the company has one of the most massive cash hordes in the market, non-existent debt, and extremely impressive free cash flow.

A key player in the mobile revolution is on sale

Heard of Gorilla Glass? You know, that stuff that is used to produce the screens of everything from iPhones, to the Galaxy line of Android devices, to the Nokia Corporation (NYSE:NOK) Lumia 920? The maker of Gorilla Glass, Corning Incorporated (NYSE:GLW) is another company, like Apple, that looks undervalued. Like Apple, the company is also stuck with a forward P/E of around 9. The company sports a higher dividend, however, of around 3%. The company holds around $3 billion in cash (net of debt) as well, and is relatively strong financially. The company generates most of its revenues from LCD display panels, which have seen slowing demand lately, but demand for Gorilla glass in smartphones and tablets (which should continue to grow) may provide this company with a new outlet for growth. Corning is also working on its new Willow glass, which is apparently thin and bendable enough to allow it to be curved in a deep arc without breaking. And one more fact I would like to note- the company is trading at a price to book ratio of only .83, which is something you don’t often see with a great company like Corning.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!