Wayne Kaufman, chief market analyst with Rockwell Securities, talks about the market with NBR, and answers viewers’ questions about stocks.
G.E. stock seems to be stuck in the mud. I cannot understand how a company so diversified and productive seems to have lost favor with investors.
– Howie L.
Kaufman: You know, I think he hit the nail on the head with the question. I`m neutral on G.E. There`s just nothing exciting going on there. They don`t have much revenue growth. They do have a nice dividend.
They probably just will trade with the market.
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I enjoy your program immensely. I am retired. I would really appreciate if you would discuss the future of Hewlett-Packard stock.
– Dr. Rosy G., Portland, Ore.
Kaufman: I`m a fan of Hewlett-Packard. They surpassed analyst estimates for the last two quarters, which is something I always look for. The chart is bullish, which means the stock is going higher.
And the test on Hewlett-Packard will be, should the stock go up to the $30 area? Right now, it`s a little over $25.
Should it go to $30? There is some resistance there. If it breaks there, then that`s going to be great for the chart. But I think people are expecting that the P.C. business, which has been soft, everybody knows, it`s going to make a nice recovery in the second half of the year, and they have been beating estimates in spite of weak PC business. So I think that speaks very well for them.
I would like to hear about Ford stock and where it’s headed.
– Tom S.
Kaufman: I`m a fan of Ford. The stock recently broke out nicely making new highs. So, it, too, has a bullish chart. Ford, like Hewlett- Packard (NYSE:HPQ) has been beating estimates but they`ve done it for five quarters in a row. That`s very good.
I think everybody heard the news that domestic auto sales were terrific. Ford is also doing very well in China. So they are really hitting on all cylinders and I think there is more upside for the stock.
I’m interested in 3D printing. I work at Stanford and am surrounded by people innovating, including 3D imaging for health care.
– Margaret L., Redwood City, Calif.
Kaufman: Well, there is no doubt the 3D group has been one of the most exciting things to come along in technology or in the economy. There– it`s just potentially a game changer and like all groups that catch the imagination of the public, it becomes highly valued.
So, I view all of these stocks — there`s three others along with DDD. There is XONE, PRLB and SSYS — I view them all as trading stocks until this becomes a more mature industry where we can see a little further down the road. But it`s definitely a very exciting space to be in.