The market is confused. On the one hand, the earnings seemed robust. On the other hand, market is worrying about the deficit, sovereign debt, tightening in China and populism against the banks. I still believe the market is going to be range bound.
The market is oversold. I will buy 200 shares of HSE @ 26.60, 200 INTC@19.3. If IBM goes below 120, I will be interested. IBM has very stable income. It did not drop in 2009, which is very impressive. It did not have high growth either. A 10X multiple, given the stable income, low growth, and strong cash flow seems very reasonable.
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