We added two new stocks to our portfolio today. The two are Cisco Systems (CSCO) and BorgWarner (BWA).
Cisco Systems has held remarkably well during the stock market volatility and it pays a dividend of 3 percent. Cisco has positive growth prospects and we intend on picking up more shares on any major dips. Cisco is literally the king of networks and network security along with other assets in its portfolio.
BorgWarner is a great value buy and it’s recent foray into electric motors makes us think this stock too has growth prospects but we think this company will likely be acquired by a larger company in the not to distant future. BorgWarner only pays 1.75% dividend but has a solid track record.
We may be finally headed into a stagflation economy and one likely outcome of such an environment is consolidation. We expect a feeding frenzy of larger companies eating smaller ones to expand market share or eliminate the competition. The key trick now is to find those companies that could be swallowed up with the right metrics.
Stay tuned and stay solvent…