The Dow's 3 Biggest Losers This Week

On a relatively quiet week for the Dow, there were still a few losers in the mix. Specifically, Caterpillar (NYSE: CAT  ) , Hewlett-Packard (NYSE: HPQ  ) , and Coca-Cola (NYSE: KO  ) all fell more than 2% for the week. While Caterpillar and Coca-Cola still have compelling reasons to stay invested in them today, Hewlett-Packard's weakness is justified.

The biggest news item this week was easily Ben Bernanke's comments at Jackson Hole, Wyo., but the much-anticipated event still didn't provide any clear expectations for investors. Instead of tuning into what the Federal Reserve said this week, investors should be homing in on great companies for the long run and tuning out the market noise.

Caterpillar is the market-share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in our brand-new report. Just click here to access it now.

Austin Smith owns shares of The Coca-Cola Company. The Motley Fool owns shares of The Coca-Cola Company. Motley Fool newsletter services recommend The Coca-Cola Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (12)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 02, 2012, at 3:59 PM, fortuitoustrade wrote:

    I actually had this stock brought to my attention from a message on StockTwits on Wednesday (I was in an INTC trade at the time), and taking a look at it, the reduced dividend (I prefer divvies > 3%) is more than made up for by the cult following that this company has. As the number one brand in the world, I see this trade as perhaps being too easy, and that's why I'm a little bit cautious in my initial position. I have no intentions of letting greed get the best of me. This stock is showing 1 of 3 oversold indications, with price action still riding the lower end of the Bollinger Band. The RSI was oversold on Thursday and is just slightly above oversold as I write. The MFI is showing no oversold indications.

    http://www.fortuitoustrade.blogspot.com/

    So what's my plan? I have set a limit buy order for 933 shares of KO at $37.50 per share. I have also established a ladder as follows:

    Buy 133 shares at $37.40

    Buy 134 shares at $37.30

    Buy 134 shares at $37.20

    Buy 134 shares at $37.10

    Buy 135 shares at $37.00

    Buy 135 shares at $36.90

    For those looking at doing a little bit of learning, you might be asking yourself, "Why is Coke going down anyways?" From a technical standpoint, the stock was run up before the split, was overbought, and is now correcting down to oversold. From a fundamental standpoint, the poor corn crop in America due to a heat wave has made corn prices skyrocket, leaving Coke with a higher bill for high fructose corn syrup. Additionally, orange juice prices have reached a short-term peak and demand for Coke's OJ products has been viewed as reduced at these higher prices.

    Long story short though, KO is a sequence of two letters that can be typed into a discount brokerage account, buttons resulting in a purchase pressed at oversold conditions, buttons resulting in a sale pressed anywhere above oversold, and profits modestly collected as these mega-cap dinosaurs continue to roam the Earth in search of profitable revenue.

    I am but an ant along for the ride. Weee!

    Hoh yeahhh!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2004152, ~/Articles/ArticleHandler.aspx, 11/23/2014 4:59:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement