Update on Recently Recommended Stocks

So far I've recommended four stocks on the blog. I wanted to give an update on where these stocks stand...

Stock Date Price Today's Closing Price
Annaly Capital Management (NLY) 1/16/2008 $18.72 $20.54
US Bancorp (USB) 2/11/2008 $32.09 $32.41
Yahoo (YHOO) 2/11/2008 $29.80 $29.01
BE Aerospace (BEAV) 2/19/2008 $39.05 $38.28


I recommended Annaly Capital (NLY) because it really benefits when the Fed is cutting interest rates. Since the recommendation, the Fed has cut the Fed Funds Target Rate twice by a total of 1.25% and the stock price has responded. Last week Ben Bernanke gave another speech where he talked about economic weakness and the possibility of further rate cuts. For now, I think we should hold the stock and look to add to the position if the price drops to around $19.50. In the meantime, we will continue to collect the great 7% dividend.

I like US Bancorp (USB) as a long term holding. The stock yields over 5% and has been unscathed by the sub-prime mortgage crisis. I hope to have a more detailed report on the stock soon. For now, I plan to hold the stock and add to the position if it were to go below $30.

I recommended Yahoo (YHOO) on a rare trade scenario. After YHOO rejected the takeover offer from Miscrosft, I figured we would get an increased bid. Today, Bill Gates said that the $31 per share offer made by Microsoft was fair and that Microsoft would not be raising it. He also talked about other options Microsoft could explore to get this deal done, which tells me Microsoft is serious about buying YHOO. I think in the end, this deal will happen. We may not get a lot more than $31 per share, but we will probably get more than we paid for the stock and in today's market, that sounds pretty good.

Yesterday, I recommended BE Aerospace (BEAV) because I feel the company is going o have great earnings growth over the next few years. As with USB, I hope to have a more detailed report on the stock soon. For today I just need to note the opening price for BEAV, which was $39.05, so I could complete the recommendation.