Going long on battered stocks

[Allan from Fallbrook]

stockstradr: Financial Times seems to concur with your assessment as regards gold prices, and the potential for a steady upward climb over the next two to three years.

As far as Buffett goes: He is a Ben Graham guy all the way, and would push for value investing. The only problem with value investing at present is finding a “clean” set of books to look at, company-wise. To a certain extent, a lot of the companies being traded are “cooking” their books as regards accounting practices and how their respective balance sheets are being valued, both from the Asset and Liability side.

The FED/FOMC are completely helpless here, and the market’s continued tepid reaction to the rate cuts, as well as the severely restrained liquidity (reaction to the uncertainty as to whom is holding bad assets) is going to plague us for a while yet.

[nostradamus]

Thanks DaCounselor, I’ll take a look at those.

Stockstradr, I didn’t dump long-held stocks recently. I dumped them some time back and was lucky with the timing. I dabbled with some shorts (made a nice return off those), then gave up and pulled out of most positions (short or long) due to what I see as the irrationality of the markets. I think it would be logical to short the market as you say, but what scares me is things like BoA buying CFC and the latter shooting up 50% as we saw last week. So I have no more than $10k in stocks right now and the rest in CDs and so on.

The purpose of this thread is so I can get some ideas of stocks to buy when D-day arrives. A lot of decent companies are being battered so if I can get some good tips I’ll start doing my research now and be ready when the bloodletting begins. As Warren Buffet says (this guy is full of great quotes):

“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”

[nostradamus]

Thanks DaCounselor, I’ll take a look at those.

Stockstradr, I didn’t dump long-held stocks recently. I dumped them some time back and was lucky with the timing. I dabbled with some shorts (made a nice return off those), then gave up and pulled out of most positions (short or long) due to what I see as the irrationality of the markets. I think it would be logical to short the market as you say, but what scares me is things like BoA buying CFC and the latter shooting up 50% as we saw last week. So I have no more than $10k in stocks right now and the rest in CDs and so on.

The purpose of this thread is so I can get some ideas of stocks to buy when D-day arrives. A lot of decent companies are being battered so if I can get some good tips I’ll start doing my research now and be ready when the bloodletting begins. As Warren Buffet says (this guy is full of great quotes):

“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”

[nostradamus]

Thanks DaCounselor, I’ll take a look at those.

Stockstradr, I didn’t dump long-held stocks recently. I dumped them some time back and was lucky with the timing. I dabbled with some shorts (made a nice return off those), then gave up and pulled out of most positions (short or long) due to what I see as the irrationality of the markets. I think it would be logical to short the market as you say, but what scares me is things like BoA buying CFC and the latter shooting up 50% as we saw last week. So I have no more than $10k in stocks right now and the rest in CDs and so on.

The purpose of this thread is so I can get some ideas of stocks to buy when D-day arrives. A lot of decent companies are being battered so if I can get some good tips I’ll start doing my research now and be ready when the bloodletting begins. As Warren Buffet says (this guy is full of great quotes):

“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”

[nostradamus]

Thanks DaCounselor, I’ll take a look at those.

Stockstradr, I didn’t dump long-held stocks recently. I dumped them some time back and was lucky with the timing. I dabbled with some shorts (made a nice return off those), then gave up and pulled out of most positions (short or long) due to what I see as the irrationality of the markets. I think it would be logical to short the market as you say, but what scares me is things like BoA buying CFC and the latter shooting up 50% as we saw last week. So I have no more than $10k in stocks right now and the rest in CDs and so on.

The purpose of this thread is so I can get some ideas of stocks to buy when D-day arrives. A lot of decent companies are being battered so if I can get some good tips I’ll start doing my research now and be ready when the bloodletting begins. As Warren Buffet says (this guy is full of great quotes):

“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”

[nostradamus]

Thanks DaCounselor, I’ll take a look at those.

Stockstradr, I didn’t dump long-held stocks recently. I dumped them some time back and was lucky with the timing. I dabbled with some shorts (made a nice return off those), then gave up and pulled out of most positions (short or long) due to what I see as the irrationality of the markets. I think it would be logical to short the market as you say, but what scares me is things like BoA buying CFC and the latter shooting up 50% as we saw last week. So I have no more than $10k in stocks right now and the rest in CDs and so on.

The purpose of this thread is so I can get some ideas of stocks to buy when D-day arrives. A lot of decent companies are being battered so if I can get some good tips I’ll start doing my research now and be ready when the bloodletting begins. As Warren Buffet says (this guy is full of great quotes):

“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”

[Allan from Fallbrook]

Nost: Interesting article on MSN Money. Includes picks and tips on various companies the author deems worth of investing in. The agribusiness recommends caught my eye (wife’s family owns corn/soya properties in Nebraska and Iowa).

http://articles.moneycentral.msn.com/Investing/SuperModels/10MarketPredictionsForAGlum08.aspx?page=2

[Allan from Fallbrook]

Nost: Interesting article on MSN Money. Includes picks and tips on various companies the author deems worth of investing in. The agribusiness recommends caught my eye (wife’s family owns corn/soya properties in Nebraska and Iowa).

http://articles.moneycentral.msn.com/Investing/SuperModels/10MarketPredictionsForAGlum08.aspx?page=2

[Allan from Fallbrook]

Nost: Interesting article on MSN Money. Includes picks and tips on various companies the author deems worth of investing in. The agribusiness recommends caught my eye (wife’s family owns corn/soya properties in Nebraska and Iowa).

http://articles.moneycentral.msn.com/Investing/SuperModels/10MarketPredictionsForAGlum08.aspx?page=2

[Allan from Fallbrook]

Nost: Interesting article on MSN Money. Includes picks and tips on various companies the author deems worth of investing in. The agribusiness recommends caught my eye (wife’s family owns corn/soya properties in Nebraska and Iowa).

http://articles.moneycentral.msn.com/Investing/SuperModels/10MarketPredictionsForAGlum08.aspx?page=2

[Allan from Fallbrook]

Nost: Interesting article on MSN Money. Includes picks and tips on various companies the author deems worth of investing in. The agribusiness recommends caught my eye (wife’s family owns corn/soya properties in Nebraska and Iowa).

http://articles.moneycentral.msn.com/Investing/SuperModels/10MarketPredictionsForAGlum08.aspx?page=2

[Eugene]

the idiotic FOMC appears to have chosen the “print money” approach to this economic crisis (and to the larger problem of America’s excessive foreign debt)

Correction.

FOMC chose to appear to print their way out of this economic crisis.

The runup of gold is not justified by the amount of money that was printed thus far (which is basically zero).

Furthermore, there are some substantial limitations to how much the Fed CAN print unless ECB agrees to print money too which they seem to be reluctant to do.

Finally, global recession will dampen the demand for gold jewelry. Especially in China and India, and jewelry demand is something like 60-70% of total gold demand.

I think it’s a good time to start reducing your exposure to gold. Today it’s at $905. If it hits $1000, I’m going to cash out completely.

[Eugene]

the idiotic FOMC appears to have chosen the “print money” approach to this economic crisis (and to the larger problem of America’s excessive foreign debt)

Correction.

FOMC chose to appear to print their way out of this economic crisis.

The runup of gold is not justified by the amount of money that was printed thus far (which is basically zero).

Furthermore, there are some substantial limitations to how much the Fed CAN print unless ECB agrees to print money too which they seem to be reluctant to do.

Finally, global recession will dampen the demand for gold jewelry. Especially in China and India, and jewelry demand is something like 60-70% of total gold demand.

I think it’s a good time to start reducing your exposure to gold. Today it’s at $905. If it hits $1000, I’m going to cash out completely.

[Eugene]

the idiotic FOMC appears to have chosen the “print money” approach to this economic crisis (and to the larger problem of America’s excessive foreign debt)

Correction.

FOMC chose to appear to print their way out of this economic crisis.

The runup of gold is not justified by the amount of money that was printed thus far (which is basically zero).

Furthermore, there are some substantial limitations to how much the Fed CAN print unless ECB agrees to print money too which they seem to be reluctant to do.

Finally, global recession will dampen the demand for gold jewelry. Especially in China and India, and jewelry demand is something like 60-70% of total gold demand.

I think it’s a good time to start reducing your exposure to gold. Today it’s at $905. If it hits $1000, I’m going to cash out completely.

[Eugene]

the idiotic FOMC appears to have chosen the “print money” approach to this economic crisis (and to the larger problem of America’s excessive foreign debt)

Correction.

FOMC chose to appear to print their way out of this economic crisis.

The runup of gold is not justified by the amount of money that was printed thus far (which is basically zero).

Furthermore, there are some substantial limitations to how much the Fed CAN print unless ECB agrees to print money too which they seem to be reluctant to do.

Finally, global recession will dampen the demand for gold jewelry. Especially in China and India, and jewelry demand is something like 60-70% of total gold demand.

I think it’s a good time to start reducing your exposure to gold. Today it’s at $905. If it hits $1000, I’m going to cash out completely.

[Author]

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