Market Wrap-Up for Jan.11 (AA, LEN, WLT, FLR, BEN, more)

Filed in alcoa, dividend, downgrade, earnings, Gold Investment, o, outperform, shares, upgrade by on January 11, 2011 0 Comments

With the release of Alcoa’s ( AA ) results last night, investors should be getting primed for the deluge of earnings reports due out for the first quarter. The response to Alcoa’s numbers were muted, but homebuilder Lennar Corp ( LEN ) saw some some buyers following the company’s report this morning. There is a lot of chatter going on regarding the housing market potentially building a bottom, and we saw a similar positive reaction from the markets when KB Home ( KBH ) reported last week. My gut was that the financials would be the better candidate for a decent rebound in 2011, but it may make sense to watch the homebuilders for anecdotes as well. I still stick with my thesis on investing in real estate, which is to focus on multi-family/commercial units that throw off numbers that work each month. Buyers simply bought on the hope of price appreciation potential in the recent mania, and you see how that worked out in the end. Any price appreciation you get would be gravy if the rent-roll carries the properties and puts money in your pocket every month. Speculation in flipping condos burned many buyers the last few years and is something I would be guarded against trying. All this said, I still prefer dividend stocks for the liquidity and the fact that there are still great names that can be bought in today’s market at current valuations. Speaking of great names, we just added eight new names to our Best Dividend Stocks list today. Check out the link below if you did not read the e-mail alert we sent out earlier. We prefer investors not hurry into any names we first recommend, but instead look for entry points on pullbacks. Also, the two

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Market Wrap-Up for Jan.11 (AA, LEN, WLT, FLR, BEN, more)

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