January 27, 2013 Comments

Friday was another decent day in the markets. Toll Brothers was up 2.4% to $37.98. That’s a 23% increase since we rated it a Speculative Buy on December 8 at $30.77. With a 23% increase our report has effectively become out of date. I have a position in it and would be more inclined to trim that position than to buy at this price.

Based on the ratings above, and current prices, I think the best buy would be Wells Fargo and Canadian Tire. Also to a lesser degree Bank of America. Both banks reported Q4 results and our analysis is not updated for that but I don’t think the ratings would have changed. I don’t offer any advice on what any investors exposure should be to the banking, retail, or any other sector since that is very much dependent on a host of personal factors.

Conventional wisdom might suggest never getting too high of an exposure to any one sector and certainly to any one stock. On the other hand I can point to some individuals, including myself, who have long ignored conventional investment wisdom and things have worked out nicely. Perhaps there is something to be said for unconventional wisdom. Often being unconventional may be very unwise. But there are times when one can be both unconventional and very wise.


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