Photo By timparkinson

As many of you know, the stock market has taken an absolute beating this past year – with a large drop off just this past month. Kind of reminds me of that U2 song “October”:

The trees have sure been stripped bare, and the kingdoms have sure fallen this October. The DOW Jones Industrial Average is down around 40% from a year ago (10/9/2007 = 14,279; 10/9/2008 = 8,579), dropping roughly 13 % in October alone.

 
But what can one do with all this bad news? – or is it really bad news at all. I heard one person mention, that as long as you have a job, and have some income or capital, now’s the time to buy. So if one was looking for bargains on stocks, and ‘blue plate specials’ if you will, what would be some good stocks to buy? Keep in mind, I’m not a certified financial planner, or am not saying any of these stocks won’t drop tomorrow. I’m also not searching for a quick buck on day trading. These are long term companies, who’s stocks have dropped well below their overall value. And I’m simply relaying the research I’ve done on some good companies to own, and good stocks to buy, here’s what I’ve found. (based on the current price, P/E, Dividend and 52 Week Low / High).  Note: these are my opinions only, not recommendations.

1. Google GOOG
   • Current Price: $364.02
   • P/E: 22.60
   • Dividend: NA
   • 52 Week Low / High: $309.44 / $747.24
   • One just needs to look at the 52 week high, and 52 week low. Google is a great company, with lots of cash, and excellent profits. Although I’m not excited about the fact that they don’t pay dividends, I still think it’s a great buy at this price.
2. Microsoft MSFT
   • Current Price: $22.31
   • P/E: 11.78
   • Dividend: $0.13
   • 52 Week Low / High: $20.65 / $37.50
   • I’m not a huge Microsoft fan (as I write this on a mac). But I will say they have a great company, that is really well managed. I read Bill Gates’ book “Business at the Speed of Thought”, and I must say I became a fan of Mr. PC. His philosophy on technology, conversion of paper to digital, and overall intelegence makes me want to invest in his company. Not to mention the decent dividend, the low price, and the fact that they operate with no debt, and tons of cash. (which can be put towards buy backs, meaning less stocks, meaning higher price)
3. Cisco CSCO
   • Current Price: $17.46
   • P/E: 13.31
   • Dividend: NA
   • 52 Week Low / High:  $15.90 / $34.24
   • Cisco also doesn’t pay a dividend, but I just can’t help it at this price. Networking and digital technology are only going to grow as the years go by, Cisco is in a great position to capitalize on that trend. And at this price, it’s practically a steal.
4. Disney DIS
   • Current Price: $25.75
   • P/E: 11.12
   • Dividend: $0.35
   • 52 Week Low / High:  $21.25 / $35.02
   • I’m a long time fan of Disney as a company, and trendsetter. If you’ve ever been to Disneyland you can’t help but marvel at their creativity and attention to detail. With a low P/E, great dividend, and great share price, what else can I say? I just may stop writing this article and buy some right now. ☺
5. Coke COKE
   • Current Price: $43.73
   • P/E: 28.08
   • Dividend: $0.25
   • 52 Week Low / High:  $31.41 / $64.17
   • Coke is a long time company that has ridden the waves of economic ups and downs. It seems that everyones addiction to this soft drink, keeps the company well above water day in and day out. Good dividend, P/E is a little high, but being that their stock price is well below their 52week high, I think it’s on sale.
6. Nike NIKE
   • Current Price: $56.97
   • P/E: 15.71
   • Dividend: $0.23
   • 52 Week Low / High:  $46.47 / $70.60
   • Another great company that has stood the test of time. Great dividend, low P/E, and well below its 52week high. Although it takes a decent amount of capital to invest in this somewhat pricey stock, I think it’s well worth it.
7. Verizon VZ
   • Current Price: $30.62
   • P/E: 14.05
   • Dividend: $0.46
   • 52 Week Low / High:  $23.07/$45.96
   • The biggest reason to buy this stock: the dividend. One of the highest I’ve seen. Also shining light is the P/E. With the surge of cell phones, and wireless devices, I think it’s safe to say Verizon will be with us for a while, and with dividends like that, it might be all you need to make this a safe investment for the long haul.

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Tags: COKE, CSCO, DIS, GOOG, Investing, MSFT, NIKE, Stocks, VZ