Australian Investment Blog

Three stocks we are watching carefully for different reasons

Good morning everyone Overview Last night Mario Draghi announced larger economic stimulus than expected, "the bazooka", initially sending equities soaring. However the euphoria of the European Central bank's (ECB) actions did not last long as European stocks reversed significant gains to actually close in the red! A few hours later the US markets rallied to erode some pretty decent losses at around ~4am AEST as markets look for fresh direction. Market Matters is now in watch and see mode short term waiting for the market to show its hand. However, as regular readers know, longer term we remain bearish and hence are evaluating levels to reduce our equity exposure. Below we will evaluate two stocks recently purchased together with one that may be our next purchase. Remember, a plan to sell is as important as a plan to buy BUT unfortunately not an area where most investors concentrate enough effort. 1 Telstra (TLS) 5.19 Market Matters recently bought TLS ~$5.13 before it paid its 15.5c fully franked dividend.This position is currently looking excellent, being up 6c plus the 15.5c dividend ~4%. Market Matters remains comfortable with TLS targeting $5.50-$5.60; the stock's perceived safety stock is also attractive to us with our negative longer term outlook.