Big Buying Opportunity in Munger’s Favorite Stock

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

U.S. stock markets traded broadly flat last week, with only the Dow Jones Industrial Average eking out a gain of 0.48%.

Otherwise, the S&P 500 closed down by 0.63% and the tech-heavy Nasdaq fell by 0.71%. The MSCI Emerging Markets Index ended the week 1.46% lower.

Your Smart Money Masters holdings had a mixed week. Restaurant Brands International (QSR) led the week with a 7.44% gain. Baxter International (BAX) jumped 3.46%. Paypal Holdings (PYPL) rose 0.88%.

The big news in your portfolio was in Costco Wholesale (COST), which tumbled 9.76% over the past week on news that Amazon is taking over Whole Foods.

Both Goldman Sachs and Deutsche Bank (DB) downgraded Costco, saying that the competitive advantage from its food business is at risk due to Amazon. DB reduced its price target for the company to $172 from $187.

Not everyone on Wall Street is jumping ship. Cowen reiterated its outperform rating and $190 price target on the belief that Costco will survive Amazon’s onslaught.

I agree with Cowen. Although the dust has yet to settle, I think this is a textbook case of a market overreaction and a buying opportunity.

BlackBerry Limited (BBRY) will release first-quarter fiscal 2018 results on June 23, before the market opens. Last quarter, the company delivered a positive earnings surprise of 75%. In fact, BlackBerry has beaten consensus estimates in each of the last four quarters, with an average beat of 75%. Shares of BlackBerry have rallied 53.21% in the last three months.

Several of your positions fell below their 50-day moving average and are now HOLDs.

Exclusive  Buy Bitcoin from the U.S. Government

Sincerely,

Nicholas Vardy

Nicholas A. Vardy

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

Learn how the Chinese business company Alibaba may be a better buy than Amazon.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE