I see CDW as a solid growth company. After reaching an agreement with Dell they are in a good position to really expand their business. Lets look at some numbers:
As you can see it looks like they are poised for some solid growth, and the stock should continue to climb over time. I foresee the stock potentially climbing to 85 by December 2016.
IF there was no market crash due next spring/early summer. Ive been tracking the technicals and it looks as though a correction is due in the order of 2008 in the middle of next year. When that happens, the market is going to drop and drag down all stocks with it. Think of the stock market like the ocean and stocks are beachballs floating on that ocean. The market goes up and down, and the beachballs float along with it. Waves come in shore, beachballs drift in. Waves go back out, the beachballs ride it back out.
If there is a crash, CDW could potentially retract back to the high 20's.
But in the big picture, thats not a problem. Why is that?
Some people look at the stock price everyday while at work. "Cool! We're up today!" or "Damn, down again," calaculating in thier head what thier shares are worth, what they are holding and what they can buy with it. This is a waste of time. Because the big picture is all that matters, and I am talking a time frame of 6 months to a year blocks, not daily.
You see, CDW is like waves on the beach. It goes up, it comes back down. And over and over again as it is climbing long term. Take a look at the technical chart of CDW below:
Observe that while overall climbing, the stock goes through smaller stepping cycles of climbing up and down, much like a ladder. Its never a smooth upward motion. Thats why you should ignore what the stock does day to day and instead check maybe every 2 weeks to a month for a more true picture.
So let your company set up a stock program for you while you contribute though your company and the machine will keep cranking on. The only time when you want to purchase this stock with your own money on the side is right at the end of a major crash. Thats when you can make the big money. Its like getting in a time machine and going to 1929 and buying GM and coke in the middle of the crash. For example, lets look at a chart of the stock market during and after the crash of 2008:
What do you notice? Something very important: The double bottom. The market will come down, bounce then go up a bit, then bounce again at about the same level, making the shape of a double bottom "W". This is a signal that the bottom has been reached in the crash and that the market will go up from there, letting you know its time to put your money in.
This is found by typing in QQQ and selecting the weekly chart in a 3 year timeframe.
If during the next crash you see this signal for the weekly QQQ, start putting your own money in the side into CDW.
Thats all for now,
Tradinginsider
Wednesday, December 2, 2015
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