Saturday, July 24, 2010


Buy PCLN at current prices
Price Target:  $300+
Timeframe:    2+ years (PCLN) has been very strong over the past two years but has had a pullback in recent months.  First off, it bottomed out in November 2008, 4 months before the market did which is a sign of strength.  Shortly thereafter, it zoomed off lows of under $50 to over $250 -- a "five bagger" in the vernacular of Peter Lynch's classic book, "One Up on Wall Street," an excellent read I might add.
In recent months it has pulled back from the highs to a recent low of $180 and came back to close yesterday at $228.64.  I bought it on July 9, 2010, at just under $200/share.

This is the kind of growth stock that could go much higher than $300 in the coming years.  If it can do this kind of price performance while the economy is still bad, what do you think it will do when the economy actually recovers?  Remember not to put too much money into any one stock or class of stock.  Diversification has its place and should be followed to protect you in case the unexpected happens.