Joe Magyer is a man on a mission. The advisor of Motley Fool Inside Value buys two-day-old bread because it's even cheaper than the day-old variety, he checks other people's couches for loose change, and he has made a Foolish living as a value hound, finding bargains in the market. Today, he shares two outstanding companies that aren't quite cheap enough for him to buy, plus a universally unloved carmaker that is screaming value. For your investing convenience, you can now create your own version of My Watchlist, free and easy from the Fool -- just go to www.MyWatchlist.com, or click on one of the links at the end of the article.
Two loved stocks
Everything seems to be going well for Google
"The so-called easy money is long gone," says Joe, who made Google an Inside Value recommendation last July and now has it as a hold following a 25% run-up. "But I think this will be a solid performer over the next five years. I anticipate a boost coming from mobile search, and Google's always going to be developing new revenue avenues, but I'd like shares to be cheaper before I'd jump in again."
Joe sees eBay
"More people have Paypal accounts than American Express or Discover," Joe says, "and it's becoming more widely accepted every day. As more merchants accept it, more people will use it, which will lead to ... well, the network effect again." Additionally, eBay is getting aggressive with Paypal on mobile, meaning that shoppers can concentrate on driving and shopping only without having to pull out their credit cards at the same time.
"Unfortunately, we're not the only ones who have noticed the potential growth for Paypal," says Joe, almost despondently. He's hoping for a pullback.
And one that's pretty much deplored
Joe's final offering doesn't run the risk of being overly loved by the media, investors, or really anyone.
"Everyone seems to hate General Motors
That's partially because of some larger-picture tailwinds: New vehicle sales over the past two years have been historically bad, used car prices are at record highs, and the U.S. vehicle fleet is aging.
"There's a coiled spring of demand waiting to unload -- there's only so long people can drive 10.5-year-old cars," Joe says. The company has streamlined its operations and its balance sheet is in good shape, plus Joe thinks the Chevy Volt will bring a lot of customers to the lots. As a relatively newly public company, the financials are still a challenge to decipher, but that's helping depress the share price. "When the next report rolls around, the financials will be much more transparent, and I think that'll be a catalyst to send the stock a lot higher. In the meantime, I love the fact that so many people hate GM."
And that's why it pays to watch. Keep your eyes on all of these companies by adding them to My Watchlist, your free and customized hub for the news and numbers on the companies you care about. Just click below to start.
Roger Friedman doesn't own shares of any of the companies mentioned above, but he'll be watching them. Joe Magyer owns shares of GM. General Motors and Google are Motley Fool Inside Value selections. Google is a Motley Fool Rule Breakers recommendation. eBay is a Motley Fool Stock Advisor selection. The Fool owns shares of Google and eBay. 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.
More from The Motley Fool
If I Could Buy Only 1 Stock, This Would Be It
This one company truly has it all.
Amazon's Next Victim: Google?
The FANG stocks seem to be beating everyone, but could Amazon be taking the fight to the biggest FANG of all?
14,596 Reasons to Buy Alphabet, Inc.
Investors are being shortsighted when it comes to Alphabet. Here's how the company will continue to grow revenue.