Monthly Stock Market Report – November 30, 2015

Stock Market ReportA Month of Consolidations… Buy Comcast (CMCSA) for Christmas/Holiday Presents. The S&P 500 ended at 2079 on October 31st and at 2080 on November 30th. This one point gain does not constitute what might be called an “exciting” month; it’s more like a month of what’s called “consolidating stock prices” (which means prices are firming up where they are). Specifically, the U.S. stock markets held up quite well despite the following negative elements:

  • Collapse in commodity prices due to slow demand and disappointing global growth
  • Headwinds in corporate profits
  • Disconcerting slowdowns in China
  • European economic malaise
  • Ongoing Middle East tensions.

And to the surprise of many experts, U.S. stock markets are possibly forming a base for more positive results for December and into early 2016. This renewed confidence is due in large measure to overall improving economic scenarios which indicate “good enough” going forward. And if the U.S. Federal Reserve gives the economy a vote of confidence by raising rates in December, U.S. stock markets could follow that lead and head higher.

Hence, we believe no changes to our TSOA Retirement Allocation Model Portfolios are required at this time.


Buy Comcast (CMCSA)

A recent 5% correction in the price of the solid large-cap growth stock of Comcast (CMCSA) makes it an excellent long-term buy made even better with these additional positive investment indicators:

  1. Strong revenue growth (increased 11.2% compared to 2014)
  2. Attractive valuation (CMCSA’s Price Earnings [PE] ratio of 19.08 is lower than the industry average of 23.3)
  3. Excellent cash flow from operations (10.10% growth rate for each of the last 5 years)
  4. Solid financial structure (Debt to Capital Ratio of only 35.7%)
  5. Growing dividend payout each year (from $0.65/share in 2012 to $1.00/share projected for 2016 – a 54% increase in 4 years)

While Comcast is best known as one of the largest national cable providers, many investors are not aware that Comcast also owns Universal Studios, which in turn owns the Harry Potter theme parks in Orlando, Florida and the similar planned park in Southern California. The appeal of Harry Potter books and movies for children and young adults should continue to contribute to Comcast’s positive future.

Buy Comcast shares for your own portfolio, and buy them also for your kids and/or grandkids as Christmas/Holiday presents. They will appreciate this “gift” for years to come. Tell them they now “own Harry Potter” and share with them what that means. You might be amazed at the relationships you could build with your children and/or grandchildren with this gifting idea.

Stay tuned for additional comments in future blogs by registering for a free subscription in the green box here.

Good investing and Happy Holidays!

Jim Tso

Note: Jim Tso has invested in Comcast shares in his Roth IRA accounts and in his grandchildren’s college accounts.

Monthly Stock Market Report – October 31, 2015

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Monthly Stock Market Report – September 30, 2015

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Monthly Stock Market Report – August 31, 2015

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Monthly Stock Market Report – July 31, 2015

Greeks Relent, So Back to Earnings July’s markets rebounded from the earlier negative effects of the Greek debt crisis . As we predicted, the potential Greek default scenario had only minor impact as the U.S. stock markets (S&P 500 Index) corrected less than 3%. After the Greek government accepted the reality of its situation and […]

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Monthly Stock Market Report – June 30, 2015

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Monthly Stock Market Report – May 30, 2015

Avoid “Fun” Casino Stocks (WYNN, LVS, MGM) for Now The S&P 500 squeezed out a 1.05% gain in May despite economic data that showed a contraction in the U.S. Gross Domestic Product (GDP) for the 1st quarter of 2015. This gain was due to the hope that 2015’s 1st quarter GDP contraction would be transitory […]

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Monthly Stock Market Report – April 30, 2015

Stocks Trapped in Trading Range. Buy GE with 3.2% Yield In April we were pleased that all three major stock market indices hit record highs during the month, spurred by slightly better earnings reports. However, as more earnings reports trickled in at the end of the month, all major stock market indices retreated from their […]

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Monthly Stock Market Report – March 31, 2015

A Loss Month…A Ho-Hum Quarter. Buy “Fun Stock” Six Flags (SIX) for Growth and Income (4.3% Yield) The U. S. stock market for March could best be described as a “yo-yo” market! Unlike a “roller coaster” market with somewhat smoother ups and downs, March was up strong one day and vigorously down the next day. […]

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