Investing

Projected Prices Where Investors Are Interested: Apple, JPMorgan, Ford, GE, Gilead

Despite periods of major volatility like you saw on Monday morning, the reality is that investors just do not often get to play in the extreme volatility. You may have seen prices down 10% in some major stocks, but your brokerage firm may be bogged down when it comes time to fill the orders.

24/7 Wall St. has wanted to check on the major stocks in the market with an eagle-eye view of where investors may start to buy stocks, as long as they do not feel this is the start of the next global recession. Rather than just throwing up levels that may or may not have been seen on Monday, we have mixed a fundamental reason, along with chart moves, why investors might be more inclined to be buying that stock at each price.

Keep in mind that this cannot be a tool for predicting a bottom. We have warned investors over and over in our analyst montages and market calls that the markets and valuations had been frothy. Picking or calling a bottom is generally impossible to do, even for the best hedge fund managers and for the best trading algorithms. Quite simply, we are just looking for levels at which investors might start to have a natural price interest again — some are there now and some are at prices still below.

Apple Inc. (NASDAQ: AAPL) might garner handy buying interest again in the $97 to $99 arena. That is down over 25% from the peak price of $134.54. It is also just under 11 times expected earnings. Plus, you know Apple is buying shares under its buyback plan as well. Apple shares supposedly hit a low of $92.00 on Monday morning and were last seen around $104. That is obviously a panic “market sell” order, and it is highly unlikely that any of the retail investors were able to buy Apple at anything shy of $95.00.

ALSO READ: 5 Defensive High-Yield Stocks to Survive the Sell-Off Carnage

JPMorgan Chase & Co. (NYSE: JPM) was last seen down 4.4% at $60.83, and the opening price was listed as $59.29 with a “market sell” intraday low all the way down at an embarrassing level of $50.07. The reality is that most buyers were unable to get orders executed at anywhere close to that low. Buyers who can get in under $59.00 are likely to feel very favorable here. Jamie Dimon is closer to getting JPMorgan’s dividend growth going again, and the dividend is back near 3% again. The bank is a buyer of shares as well. The $59 handle has also been within $1.00 in either direction of a key pivot point as support and resistance.
Ford Motor Co. (NYSE: F) is still financially more attractive to many investors than GM, without much of the baggage. Shares were last seen down 5.5% at $13.09. Amazingly, the panic “market sell low” print was under $10.50, but you will not find anyone who was able to buy down there. The opening print price was listed as $12.18. At a price of about $12.50 and under, Ford shares come with a 4.8% dividend yield — versus 4.3% or so around the current price. This $12.50 estimated price was resistance on the stock in 2012 and was also right around the lowest share prices back in 2013.

General Electric Co. (NYSE: GE) hit a low of $19.37 on official quotes this morning, but at $24.00 it is down just 2.3%, with an opening price of $22.74. It seems that investors would be more than happy to buy GE at $23.00 or under, which would be just under a two-year low. That may not be dirt cheap at 16 times a blended 2015/2016 EPS figure, but at $23 GE yields exactly 4.0% on its dividend. Oh, and GE has already pledged that it will be an aggressive buyer of stock with the proceeds from its financial asset sales.

Gilead Sciences Inc. (NASDAQ: GILD) is the king of biotech, and shares were last seen down 2% at $103.00 or so. What stands out here is that some unlucky investor had a market sell order get executed down all the way at $86.00, a whopping five cents above the 52-week low. Based on how Gilead traded during the woes around reimbursement fears around Sovaldi and Harvoni, Gilead shares sold down to $90 or so without considering the absolute low prints. For this reason, investors are likely to view prices of $96 to $98 as favorable entry points, as this level had acted as support in 2014 and 2015.

ALSO READ: During Massive Sell-Offs, Triple-Leverage ETFs Look Nuts With NYSE Circuit Breakers

Again, what you saw on Monday morning was far from normal. Many of those low prices are solely the result of the “market sell” orders that took place during the panic times of the day. Sadly, that is the market for you. Many of these should not even likely be considered true lows or 52-week lows. In some ways these even acted just like the price mechanisms of the market worked (or failed to work) during the Flash Crash — a total disparity among share prices.

See the expandable chart montage below for Apple, JPMorgan, Ford, GE, Gilead and the DJIA (via DIAMONDS ETF) over the last year from StockCharts.com:

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