Starbucks Corporation (SBUX), Ford Motor Company (F): So You Just Hit a Homerun Investment. Now What?

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Sirius XM Radio Inc (NASDAQ:SIRI) continues to prove the naysayers wrong.  When this first came out I remember people saying “who would pay for radio when you can get it for free?”  It’s almost laughable to think about that now, as Sirius is pulling in almost $3.5 billion a year in revenue.  As the auto industry continues to pick up steam, look for Sirius XM Radio Inc (NASDAQ:SIRI) to continue their growth story.

Sirius XM Radio Inc (NASDAQ:SIRI) has a near monopoly on the satellite radio market.  But even though they have a huge market share, this company continues to invest right back into the business through innovations, and continues to invest in shareholders with share buybacks.  This company’s not going anywhere.

While maybe not your favorite company, there is a lot of reason to think that Bank of America Corp (NYSE:BAC)’s worst days are behind them.  You may be quick to point out their recent earnings miss.  It’s true that revenue was down 8% from this time last year.  And you may point out that net income missed estimates as well.  I guess that’s also true, but only half the story.  Net income for the quarter was up 300%.  To me this is a sign that the bank is cutting costs, and is making a push to get the mortgage mess behind them.  That’s good news.

Perhaps better still is that net income was at $0.20/share.  That’s way up from just $0.03/share last year.  So in summary, revenue falls.  Net income up.  Earnings per share (shareholder value) is way up.  Throw in the wildcard of a reinstated dividend somewhere on the horizon, and I see no reason why you would sell now.

Foolish Conclusion

Did you hit a home run investment?  Don’t let that be your only reason to sell your stock.  If you have good reasons to sell, then fine.  But with the companies that we have looked at today, I don’t think selling them would be a good idea.  Sure, they’re home runs.  But the way I see it, they still have a long way to go before their growth is over with.

The article So, You Just Hit a Home Run Investment. Now What? originally appeared on Fool.com and is written by Jon Quast.

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