Investing Thread

[bigruss]

Split about another 2k on F, GE, DE, MMM today. Trying to diversify my portfolio a bit and I really see some growth possibilities in these companies, especially Ford where they performed pretty well lately and imo is undervalued at about $10.13 per share.

[bigruss]

Also, what do you guys think about BAC? Is that a stock that will keep going down or is it a decent risk at under $7 a share.

[NorthSideSox72]

Split about another 2k on F, GE, DE, MMM today. Trying to diversify my portfolio a bit and I really see some growth possibilities in these companies, especially Ford where they performed pretty well lately and imo is undervalued at about $10.13 per share.

 

 

Also, what do you guys think about BAC? Is that a stock that will keep going down or is it a decent risk at under $7 a share.

 

The entire markets are undervalued. I just saw a quote today from a money manager, saying that he couldn't remember a time when stocks were so cheap and no one was buying. That means, short term, things might get ugly... but long term, this will be looked back on as a huge buying opportunity.

 

[bigruss]

The entire markets are undervalued. I just saw a quote today from a money manager, saying that he couldn't remember a time when stocks were so cheap and no one was buying. That means, short term, things might get ugly... but long term, this will be looked back on as a huge buying opportunity.

That's my plan, I keep reading all these articles where companies are just sitting on billions of dollars right now. I'm just hoping that I can take advantage of investing young and paying off later, and since Im doing remote work for my company and making my intern wages I don't have to worry that much about spending money on alcohol still

[Jenksismyhero]

Also, what do you guys think about BAC? Is that a stock that will keep going down or is it a decent risk at under $7 a share.

 

I've been debating this for a while now since it's so cheap. The big cash infusion from Buffet seems like a ringing endorsement.

[Balta1701]

I've been debating this for a while now since it's so cheap. The big cash infusion from Buffet seems like a ringing endorsement.

That could also be a big bet on a government bailout.

[bigruss]

Im debating selling off my VZ stock for either T or VOD. I've made a good profit off of VZ so far but not sure if they are going to keep the share price where it is or continue to raise it.

[southsider2k5]

Also, what do you guys think about BAC? Is that a stock that will keep going down or is it a decent risk at under $7 a share.

 

The more that stuff leaks out of Europe, the more I am not sure about messing with the banks right now. If there is a run on the big banks in Europe, that virus will probably hop the pond.

[Balta1701]

The more that stuff leaks out of Europe, the more I am not sure about messing with the banks right now. If there is a run on the big banks in Europe, that virus will probably hop the pond.

High Risk, High Reward.

[southsider2k5]

High Risk, High Reward.

 

At $7 a share, I don't know that you could call that "high risk".

[Balta1701]

At $7 a share, I don't know that you could call that "high risk".

Then in that case, it's low-risk high reward and he'd be foolish not to invest right?

 

I'd say there's a substantial downside risk there still.

[southsider2k5]

Then in that case, it's low-risk high reward and he'd be foolish not to invest right?

 

I'd say there's a substantial downside risk there still.

 

Which was my exact point. If major bank(s) in Europe go down the circular file, major US banks will feel that.

[Balta1701]

Which was my exact point. If major bank(s) in Europe go down the circular file, major US banks will feel that.

In other words...it's high risk, high reward.

[southsider2k5]

In other words...it's high risk, high reward.

 

Unless you are Warren Buffet, no. $7 a share is more of lottery ticket range.

[Balta1701]

At $7 a share, I don't know that you could call that "high risk".

 

 

Which was my exact point. If major bank(s) in Europe go down the circular file, major US banks will feel that.

 

 

Unless you are Warren Buffet, no. $7 a share is more of lottery ticket range.

 

I can only conclude from this set of posts that 2k5 believes BigRuss22 is the Oracle of Omaha. Welcome sir! I used to work for one of your subsidiaries.

[southsider2k5]

I can only conclude from this set of posts that 2k5 believes BigRuss22 is the Oracle of Omaha. Welcome sir! I used to work for one of your subsidiaries.

 

You've got that backwards sport. Unless you are Buffet betting billions, which obviously I don't think Russ is, $7 a share isn't high risk.

[Balta1701]

Bah, I think we're just talking past each other here, I'm dropping this one.

[StrangeSox]

You've got that backwards sport. Unless you are Buffet betting billions, which obviously I don't think Russ is, $7 a share isn't high risk.

 

Share price isn't really the risk, its your total investment amount. If I dump $100k into BoA stock, I'm still a lot more likely to lose most or all of that money than if I dumped $100k into Google.

[Balta1701]

than if I dumped $100k into Google.

Really?

 

Only one of these companies has an implicit TBTF government guarantee hovering over it.

[southsider2k5]

Share price isn't really the risk, its your total investment amount. If I dump $100k into BoA stock, I'm still a lot more likely to lose most or all of that money than if I dumped $100k into Google.

 

For traders, share price is considered a part of risk. There is more risk in a share of google versus a share of BAC because of the sheer dollar amounts at play. Otherwise 0-1 type Delta options trades would be considered the riskiest of all, even though you are only better a dollar or so in all likelihood.

[StrangeSox]

Really?

 

Only one of these companies has an implicit TBTF government guarantee hovering over it.

 

So there's no risk and you're agreeing with ss2k5? What?

[Y2HH]

Split about another 2k on F, GE, DE, MMM today. Trying to diversify my portfolio a bit and I really see some growth possibilities in these companies, especially Ford where they performed pretty well lately and imo is undervalued at about $10.13 per share.

 

Ford would be undervalued if they didn't have 98.5 BILLION in debt on the books. That said, they have been paying that down, but that's a LOT of debt.

 

As it stands, it's valued properly...and I'm a shareholder and have been for close to 10 years -- first I bought in at 9.99. I later bought in at 2.17 or so. Wish I had bought more of the 2$ ones in hindsight.

 

MMM is a great stock, but it's paying a rather low dividend at it's current price.

 

If you want an investment opportunity, invest in one of the many tobacco companies, Reynolds American (RAI), for example, pays a near 6% dividend at a P/E of 16. These are what I call "moral" stocks, however...while I have no issues with investing in tobacco companies, I won't invest in any big oil companies...because I despise them, despite knowing that it's a bad business decision on my part.

 

The reason I tell people tobacco companies are a solid investment with a long term outlook is because China is getting hooked like the US was in the 50's-70's...only there are over 1 billion customers there, compared to what we had here.

Edited September 7, 2011 by Y2HH

[NorthSideSox72]

Ford would be undervalued if they didn't have 98.5 BILLION in debt on the books. That said, they have been paying that down, but that's a LOT of debt.

 

As it stands, it's valued properly...and I'm a shareholder and have been for close to 10 years -- first I bought in at 9.99. I later bought in at 2.17 or so. Wish I had bought more of the 2$ ones in hindsight.

 

MMM is a great stock, but it's paying a rather low dividend at it's current price.

 

If you want an investment opportunity, invest in one of the many tobacco companies, Reynolds American (RAI), for example, pays a near 6% dividend at a P/E of 16. These are what I call "moral" stocks, however...while I have no issues with investing in tobacco companies, I won't invest in any big oil companies...because I despise them, despite knowing that it's a bad business decision on my part.

 

The reason I tell people tobacco companies are a solid investment with a long term outlook is because China is getting hooked like the US was in the 50's-70's...only there are over 1 billion customers there, compared to what we had here.

Speaking of the tobacco play, Kraft is going to split sometime in 2012, so the talk goes. Could be an interesting move.

 

[bigruss]

Ford would be undervalued if they didn't have 98.5 BILLION in debt on the books. That said, they have been paying that down, but that's a LOT of debt.

 

As it stands, it's valued properly...and I'm a shareholder and have been for close to 10 years -- first I bought in at 9.99. I later bought in at 2.17 or so. Wish I had bought more of the 2$ ones in hindsight.

 

MMM is a great stock, but it's paying a rather low dividend at it's current price.

 

If you want an investment opportunity, invest in one of the many tobacco companies, Reynolds American (RAI), for example, pays a near 6% dividend at a P/E of 16. These are what I call "moral" stocks, however...while I have no issues with investing in tobacco companies, I won't invest in any big oil companies...because I despise them, despite knowing that it's a bad business decision on my part.

 

The reason I tell people tobacco companies are a solid investment with a long term outlook is because China is getting hooked like the US was in the 50's-70's...only there are over 1 billion customers there, compared to what we had here.

Hmm that is a bit concerning but at the same time I am loving their ability to grow internationally, so I think long term it's a solid investment.

 

MMM's dividend is a bit lower at that price, but is still solid, plus they do a ton of business with the company I work for so I like to have confidence there

 

I'll have to look into that, I currently am less morally aware in my investments and more into making money. I have a decent chunk of my portfolio in BP, so I guess that tells you how much moral thought I put into it. I would rather make some money now and grow my funds and then be a bit more conscious of the products later.

[bigruss]

I can only conclude from this set of posts that 2k5 believes BigRuss22 is the Oracle of Omaha. Welcome sir! I used to work for one of your subsidiaries.

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