Charles Payne: Hello, Jane. I like the notion of buying what's around you and doing well. Many people are always looking for some pie-in-the sky investment they don't understand, and they never consider the places where they spend their money or the things they enjoy doing. Having said that, simply because a company is growing like weeds doesn't mean it is a good investment. The fact of the matter is that there is so much competition in the discount retailer space that your upside could be limited, which isn't good in a market that is beginning to take off. As for my favorite in the space I like Costco (COST) best; their model has been hardest to duplicate and their management has a great execution track record.
Question: With gas prices going up, and airline ticket prices rising accordingly, what's the outlook for airplane manufacturer Boeing (BA)? — Brian (Middlebury, CT)
Charles Payne: Boeing has made a remarkable turnaround that coincided with the arrival of the current CEO. The company is gaining because of worldwide prosperity. People around the world have money and want to travel. The company decided a couple of years ago not to go head-to head with Airbus in making a super jumbo airliner (requiring the retrofitting of airport terminals), which was the stroke of genius. The good news is the company has a huge military business, too. This is a long-term buy and hold.
Question: I have 400 oz. of silver bars. Is it better to sell them and invest in something else? I'm totally naive about investing. This silver is all I've ever owned. What do you recommend? Thank you — Debra (Salem, OR)
Charles Payne: Debbie, you have gold in those silver bars, as the precious metal is making a run not seen in two decades! I'm not sure how much further the ride has, as part of the move is based on basic supply and demand, but some is based on things like speculation and hype. Personally, I would sell 200 bars and look to add diversification to my assets.
Question: What is Apple (AAPL) going to do? Should it be a buy? — Terry (Laguna Beach, CA)
Charles Payne: Terry, Apple is on the verge of a big percentage move higher. The key is going to be the company's PC business, which isn't getting the hype that iPods have, but will be the key to triggering the next jump. I think the stock is moving higher, and I think it could test the 52-week high.
Question: What's up with Pacific Ethanol (PEIX)? I bought it at around $19 a while back and rode it up to $32, then sold it last week. Right after that, it continued to rise, so I was sucked back in at $31. Now it's plunging fast. Is this stock just adjusting itself because it's overvalued, or is it down for the count? Thanks! — Jared
Charles Payne: Jared, as long as gas keeps going up there will be enough hype to spur the stock higher. But the stock is overvalued, and you were smart to be skeptical. At this stage, all I would recommend is using a trailing stop to protect your gains.
Charles Payne is the founder and CEO of www.wstreet.com and appears regularly on FNC's Cost of Freedom Business Block.
Charles Payne is the host of Making Money with Charles Payne (weekdays 6-7 PM/ET).