Gary Kaltbaum: The lesser of two evils would be Advanced Micro Devices. Intel is a mess. Earnings and revenues are plunging as inventories are now bulging. There is only one way to move that inventory — lower prices — which will squeeze margins and continue to hurt the stock price. I am not really interested in AMD right now either, as I continue to be worried about the whole semiconductor group.
Question: I have two paper shares of stock issued on Champion Homes (CHB) from 20 years ago. How do I find out if these are worth anything? Who do I contact? Many baby boomers like myself are inheriting things from their aging parents that they may not know what to do about (i.e. old issues of paper investments). Thanks!
Gary Kaltbaum : Champion Homes continues to trade under CHB. The best way to describe CHB is to just look at stock price performance. The stock is down 75% from almost 10 years ago. That should tell you everything you need to know on whether the company is doing well or not.
Question: What do you think of Qwest Communications (Q)?
Gary Kaltbaum: Surprisingly, I really like the action in Qwest as well as other telecom services companies right now. The group is in favor and so far, has shown no selling. Just in case, I would put in a hard 10% stop.
Question: Recently, I was at a summer barbecue. Food trends come and go but one thing never goes out of style on the picnic table: Budweiser and Bud Light. Makes me want to invest in Anheuser-Busch Companies, Inc. (BUD). Is this a good idea? Thanks — Frank
Gary Kaltbaum: Anheuser-Busch is a good news/bad news story. The good news is that when the economy slows, defensive issues do better. Thus the outperformance in the stock recently. The bad news is that this is a very mature company in a very mature business. Growth has slowed into the single digits, which means it is going to continue to be an average stock. I would only buy on pullbacks at this juncture.