Breaking Wall Street Market News & Reports

To my fellow long term investors that thirst for yield, safe plays, and growth! I have spent countless hours readjusting my portfolio towards the new age. The age of the Y2K’ers. Hold and forget investing ideology has been broken by the lost decade. Several “Baby Boomers” have made boat loads until 2000 and through 2006, either by real estate or stocks. They had built up positions through out their lives, but to only their surmise lose 40% during the Tech Bubble of the 2000 Recession and then lose 50-80% of their value during the Asset Bubble of the current Great Recession. The world has significantly changed and will continue to adjust as world economies unravel debt loads that one throughout history had never experienced. The next 10 years will be tough as Power House countries (i.e. United States, Germany, Japan, Canada, United Kingdom) battle the debt dilemma which I fear will mean Inflation will rear it’s head, cost of goods and food will rise, and low or even stagnate economic growth will be the norm. You’re beginning to see the start of inflation as companies increase the price of a service or cost of goods.

Here’s a few examples that have gone unnoticed:

• UPS and FedEx increased shipping rates in 2009
• Coca Cola and Pepsi raised prices for 2L sodas by 15-29%. They used to be  $0.99 
• Soda Bottles and Chips have smaller serving size but yet have the audacity to charge the same rate
• College tuition and health care continues it’s upward push
• Sporting event tickets ever so high

Here at Wall Street Grand we strive to educate our readers and investors to the forth coming and strongly suggest adjusting one’s portfolio geared for retirement or even your children’s education. I encourage all to take the appropriate measure to adjust your portfolio on a yearly basis. If Warren Buffet adjusts his holdings quarterly and yearly, it would be naive not adjust yours.

The sectors that I see growth will be in the Renewable energy, Technology, Bio Tech, and commodities.

So on to what I believe will provide growth and financial prosperity for the future. Here are my picks in the Large Cap arena:

Apple : AAPL $209.00 Has  great growth potential which continues to untap uncharted markets. The Ipod, Iphone, and now the newly introduced Ipad. I believe the Ipad will set the new norm of portable computing. It will set the stage for digital printing for Newspapers and publishers. Hard cover books will be almost non existent. Yet my strongest argument here is the Iphone. Currently in the states with only 1 carrier that has the authority to distribute the smart-phone and that is AT&T. It’s rumored that the sole licence agreement with AT&T is set to expire end of this year into 2011, it will then open up to Verizon. Verizon currently has a market of 50 million users. This could potentially add $2- $4 per earnings. Apple is currently cash liquid of $25 Billion. They have voted against distributing dividends which paves way to several near term acquisitions!

Cisco Systems Inc: CSCO $24.50 This company is involved in every aspect of the Internet and the Video Conferencing. They have splashed their industry 2008-2009 with cash purchases of integral players to direct them to future growth. They have yet to unleash the full earning potential of the newly acquired. On top of it all they sit on a hefty $35 billion of liquid cash

EBAY:EBAY $23.75 I agree their fees are a little out of touch to the likes of Amazon, but their true value is in the little acquisition of Pay Pal. The reason I’ve chosen ebay is do to the Governments recent Credit Card overhaul. Credit has been hard to come by lately. Pay-pal has offered different avenues that does not require to abide by the federal requirement. Secondly, the sale of Skype has improved their bottom line as it contributed as a laggard to the business. Last but not least Mobile commerce. Pay-pal has become the Internet version of Visa, Mastercard, and American Express of a fee based middle man transaction. They recently finalized an agreement with Facebook as being the sole provider and distributor of funds. They have also stepped up the play into as being the mobile app provider to all users. Growth this year has amounted to 61%. That alone shows the earning potential the smart-phone age has brought to this company. Lastly, Standard & Poor’s Ratings Services said Tuesday it upgraded its corporate credit rating on Internet e-commerce and payment company to A from A- with a stable outlook, reflecting the firm’s expectation that eBay will benefit from its leadership position in e-commerce and associated payment offerings.

VMware: VMW $51.25.  VMware, Inc.is a provider of virtualization solutions from the desktop to the data center. The Company’s suite of virtualization solutions addresses a range of information technology (IT) problems that include cost and operational inefficiencies, business continuity, software lifecycle management and desktop management. It works closely with over 900 technology partners, including server, microprocessor, storage, networking and software vendors. In September 2009, the Company announced the completion of its acquisition of SpringSource, an enterprise and Web application development and management. In February 2010, the Company acquired Zimbra, the vendor of open source email and collaboration software, from Yahoo! Inc. Virtualiztion can be read here. This service could potentially save a company millions of dollars. Computers in several companies are outdated. Rather than puchasing an operating a system for each station, VMware is capable of having one central system that provides support and an operating system to 1,000′s of computers and eliminate the need to buy software for each station.

Valero Energy Corp: VLO $18.75 Valero Energy Corporation (Valero) owns 15 refineries located in the United States, Canada and Aruba. The Company’s refineries can produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products, as well as a slate of products, including conventional blendstock for oxygenate blending (CBOB) and reformulated gasoline blendstock for oxygenate blending (RBOB). Valero markets branded and unbranded refined products on a wholesale basis in the United States and Canada through an extensive bulk and rack marketing network. It also sells refined products through a network of about 5,800 retail and wholesale branded outlets in the United States, Canada and Aruba. It also owns 10 ethanol plants located in the Midwest with a combined ethanol production capacity of about 1.1 billion gallons per year. The Company operates in three segments: refining, ethanol and retail. With an abundance amount of Gas reserves in the Midwest Region Valero is in the ideal position for growth as they have expanded and constructed new refineries throughout the US.

Williams Companies Inc: WMB $22.50 The Williams Companies, Inc. (Williams) is a natural gas company. The Company primarily finds, produces, gathers, processes and transports natural gas. Its operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, Eastern Seaboard, and the province of Alberta in Canada. As of December 31, 2009, the Company operated in five segments: Exploration & Production, which produces, develops and manages natural gas reserves primarily located in the Rocky Mountain and Mid-Continent regions of the United States; Gas Pipeline, which includes its interstate natural gas pipelines and pipeline joint venture investments organized; Midstream Gas & Liquids, which includes its natural gas gathering, treating and processing business; Gas Marketing Services, which manages its natural gas commodity risk through purchases, sales and other related transactions, and Other.

More Large Cap Picks to Come, but Let’s Start with these.

I hope you take this time to research and adjust your portfolio accordingly. Please join me as we venture to financial prosperity!!! Cheers

ACE

Any questions feel free to contact me @ ACE@wallstreetgrand.com

Tags: aapl, apple, cisco, CSCO, EBAY, large caps, pay pal, VLO, vm ware, VMW, WMB

This entry was posted on Wednesday, March 3rd, 2010 at 8:52 am and is filed under Commodities, Contributors, Large Cap Stocks, Technology Stocks. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.