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Talking stocks, trading, and investing in general - Page 186

post #2776 of 5000
unless you're levered to the hilt it is just another bump in the road. Why sideline?
post #2777 of 5000
What goes on with ACTC, its been flatlined forever.
post #2778 of 5000
Quote:
Originally Posted by idfnl View Post

What goes on with ACTC, its been flatlined forever.

They're getting some of their legal troubles out of the way. Possible JV within 6 months. IMO.
post #2779 of 5000
God I could've made so much fucking money if I wasn't such a pussy and bought all those AAPL shares on margin before the iPhone was launched... SO MUCH MONEY!!!!!!!!!!!!
post #2780 of 5000
Quote:
Originally Posted by SkinnyGoomba View Post

unless you're levered to the hilt it is just another bump in the road. Why sideline?
Quote:
Originally Posted by SkinnyGoomba View Post

unless you're levered to the hilt it is just another bump in the road. Why sideline?

I don't mind small 5-8% moves or paper losses, but if it's like 10%+ I start thinking of things I coulda bought hehe. I know in the long run it doesn't matter, but still like to reduce risk when possible
post #2781 of 5000
My banking stocks moved that much but the overall portfolio maybe 2-3% over the coarse of the event. If you are out of the market for big macro events it's hard to make cap gains. My opinion is that if the stock market takes a good beating than I will convert bonds into stocks to take advantage of it. If it doesn't than it is another bump in the road.

Having 38% short duration bonds in this particular portfolio has a negative effect of killing overall returns in a good year for stock markets, but it had helped me reduce risk and also outpace a bad or mediocre year like last year. A different portfolio of mind is at about 57% investment grade corp bonds and blue chip stocks that has outpaced the S&P, but it is in my experience of the more aggressive side.
Edited by SkinnyGoomba - 9/18/12 at 6:19am
post #2782 of 5000

So I am getting really tired of being poor and am interested in starting a safe stock portfolio. I am not looking to make big money quick or to make any major risks. My situation right now is that i'm gradually saving 50% plus of my earnings and it is basically sitting somewhere in a term deposit account gathering dust. I have no experience in stock trading or finance for that matter and am looking for advice on how to get started, and of course warnings.

 

Right now I'd say I'm willing to invest $2000-$5000

 

Thanks!

 

 

Edit: Don't know if asking you guys here would be any different from going into the bank or something because what i'm scared of most is being taken advantage of for my dumbassery.

post #2783 of 5000
Quote:
Originally Posted by YOLO EMSHI View Post

So I am getting really tired of being poor and am interested in starting a safe stock portfolio. I am not looking to make big money quick or to make any major risks. My situation right now is that i'm gradually saving 50% plus of my earnings and it is basically sitting somewhere in a term deposit account gathering dust. I have no experience in stock trading or finance for that matter and am looking for advice on how to get started, and of course warnings.

Right now I'd say I'm willing to invest $2000-$5000

Thanks!


Edit: Don't know if asking you guys here would be any different from going into the bank or something because what i'm scared of most is being taken advantage of for my dumbassery.

IBM.

Edit: Also, avoid tech stocks that pay a dividend,
post #2784 of 5000
Quote:
Originally Posted by Slopho View Post


IBM.
Edit: Also, avoid tech stocks that pay a dividend,

 Any reason in particular behind this remark? I'm not saying it was a silly comment, but you didn't really explain yourself.

EDIT-IBM is a tech stock that pays a dividend. Were you recommending it or using it as an example to avoid?

 

Technology has been the fastest growing sector of dividends paid in the past 7 years.

Tech stocks are expected to increase 14.3 from 2011 to 2012.

Source: First Trust

 

On a personal note, Apple is the most held company by mutual fund companies. It is held in just about every growth fund and it's held in quite a few Income Mutual Funds.

 

If you're new to investing, I'd suggest you read a book called "One Up On Wallstreet" by Peter Lynch. It's essentially a book about investing in companies you know and use personally like McDonalds, Apple, or Johnson and Johnson. Not because you heard from your neighbor to buy So and So Financial or because Jim Cramer said you should do this.

 

My advice if you're too lazy to read the book:

*I'd recommend finding a place where you can start a "mock investment account." Investopedia had one last I checked. You'll learn how to make trades without actually using real money.

*After that, open up a cheap electronic investment account through Scott Trade or similar.

*I'd suggest you learn about equity betas. The market in general has a beta of 1. A stock more volatile than the market will have a beta of more than 1. A stock less volatile will have a beta less than 1. To put that in perspective. If the market goes up 4% and a stock has a beta of 3.0. That stock would theoretically be up 12%. If a stock had a beta of .5, it would theoretically only be up 1.5%

 

Decide how agressive you want to go, what you're using this money for (playing around, save for a house or car, etc), and what you want to invest in.

post #2785 of 5000
Well, in your initial post you were looking for relatively safe stock to invest in. That's why I recommended IBM. You won't get rich and you won't go broke but you'll make a little something. Regarding dividends, especially with tech stocks, they can (and do more often than not...to me anyway) indicate that there will be slow growth on a company's PPS. I like for companies to reinvest what ever dividend they were going to pay me back into the company and keep good profitable ideas coming. There was a discussion of this earlier where some people were happy that AAPL started a dividend while others (me included) were not. MSFT pays a dividend (recently upped as a matter of fact) and you don't really at ton of innovating products coming out of that shop.

edit: Let me expand on this a little bit. So, Coca Cola (KO), Kellog (K) and McDonald's (MCD) all pay dividends. The thing with these companies is that they really don't have to evolve or innovate anything. You get your coke, you get your corn flakes, you get your burger. None of these products will become obsolete.
Edited by Slopho - 9/19/12 at 12:50pm
post #2786 of 5000
Quote:
Originally Posted by randomhero88 View Post

 Any reason in particular behind this remark? I'm not saying it was a silly comment, but you didn't really explain yourself.
EDIT-IBM is a tech stock that pays a dividend. Were you recommending it or using it as an example to avoid?

I think he was making a joke


For a dude like that above, individual stocks are too risky. He needs a fund, then learn slowly and make purchases when he has some confidence. Buying on a forums recommendations is a good way to lose money. That said.... AIG !!
post #2787 of 5000

 Let me say that I do this stuff for a living so I'd like to think my opinion has a bit of value

 

Quote:

Originally Posted by Slopho View Post

Well, in your initial post you were looking for relatively safe stock to invest in. That's why I recommended IBM. You won't get rich and you won't go broke but you'll make a little something. Regarding dividends, especially with tech stocks, they can (and do more often than not...to me anyway) indicate that there will be slow growth on a company's PPS. I like for companies to reinvest what ever dividend they were going to pay me back into the company and keep good profitable ideas coming. There was a discussion of this earlier where some people were happy that AAPL started a dividend while others (me included) were not. MSFT pays a dividend (recently upped as a matter of fact) and you don't really at ton of innovating products coming out of that shop.
edit: Let me expand on this a little bit. So, Coca Cola (KO), Kellog (K) and McDonald's (MCD) all pay dividends. The thing with these companies is that they really don't have to evolve or innovate anything. You get your coke, you get your corn flakes, you get your burger. None of these products will become obsolete.

 At the risk of sounding rude, your logic is close, but still a bit off base.

 

You are correct that, generally speaking, companies begin paying a dividend when they've passed the growth stage. Any public corporation wants their company to look as attractive as possible. A company in its growth stage invests as much as it can to continue its growth. Eventually, re-investing money into the company will yield less and less results. McDonalds and Coke have expanded globally and they're running out of physical space to add more locations or put sodas in vending machines. So at that point their goal is to stop worrying about growth and worry more about efficiency and attractiveness to investors...that's when the dividend comes in.

 

Apple has a retarded market share percentage at this point. They're still growing like crazy (They're up 98% from their 52 week low). However, eventually, the iphone 27 isn't going to wow people like the current Iphone versions have. I honestly think that their choice to pay a dividend was brilliant. It was another way for them to look attractive to investors. It's only 1.5%, but that's the perfect number if you ask me. They can keep reinvesting money into the company and they're now a "dividend payer:"

 

As far as your recommendation for IBM, I can't predict the future so my word isn't gold, but in my opinion, there are much better options out there. S&P has a 12-month target price of $227(a little over 10% from where it's at now), and Morningstar thinks its fair value is $193(That means they think it's overvalued by 6%). It's 52 week low is 21% below its 52week high. That's not huge, but it's still significant.

 

Quote:

Originally Posted by idfnl View Post


I think he was making a joke
For a dude like that above, individual stocks are too risky. He needs a fund, then learn slowly and make purchases when he has some confidence. Buying on a forums recommendations is a good way to lose money. That said.... AIG !!

 After reading his followup, I think he was being serious (either that or him sarcasm is more advanced than mine).

 

We are definitely in agreement about not buying based on forum recommendations. If you read the post you replied to I made that same point that you should avoid buying something based on hearsay. I suggested that he do a little reading on basic investing (recommended a book I found valuable), or do a mock investment account where he can learn how everything works without losing a dime.

 

To respond to your post. "A fund" is a bit to general of a statement. Buying McDonalds is going to be a much more conservative than buying a small-cap growth fund. Mutual funds can be extremely volatile too. With that said, if he wants to make money, ETFs and Mutual Funds, and UITs are the best way to build a portfolio with very little money.

 

-----------------------

These are some of the questions I ask when looking to invest in a company

*What do I want this stock to do? Grow like crazy, pay a dividend, or have constent and steady returns.

*Do I think this company is undervalued(is it trading at $30 when I think it's a $60 stock)?

*Does this company have a competitive advantage over its competition?

*Can this company sustain its price? This is for companies that pay a healthy dividend(4% or more)

*Do I like this company? It sounds silly, but financials aren't everything. 10 years ago, people would have thought buying Apple was stupid.

*Does this company have a product that won't be obsolete in 10 years? Blackberry is a perfect example of this one.

*How long to I want to hold the company for?

post #2788 of 5000
Quote:
Originally Posted by randomhero88 View Post

These are some of the questions I ask when looking to invest in a company
*What do I want this stock to do? Grow like crazy, pay a dividend, or have constent and steady returns.
*Do I think this company is undervalued(is it trading at $30 when I think it's a $60 stock)?
*Does this company have a competitive advantage over its competition?
*Can this company sustain its price? This is for companies that pay a healthy dividend(4% or more)
*Do I like this company? It sounds silly, but financials aren't everything. 10 years ago, people would have thought buying Apple was stupid.
*Does this company have a product that won't be obsolete in 10 years? Blackberry is a perfect example of this one.
*How long to I want to hold the company for?

Great points, but hard to say what's gonna be obsolete in 10 years especially in Tech. There was a time Nokia had near monopoly on cell phones, billions of dollars in cash, yet today they are practically dead. 10 years ago where was aapl $7/share?
post #2789 of 5000

Thanks for response guys. I think i'll start with reading that book and opening a mock investment account to see how i'll do first.

post #2790 of 5000
Quote:
Originally Posted by CYstyle View Post


Great points, but hard to say what's gonna be obsolete in 10 years especially in Tech. There was a time Nokia had near monopoly on cell phones, billions of dollars in cash, yet today they are practically dead. 10 years ago where was aapl $7/share?


You're right, that was a bit silly to say. My point was more to say, "does this company have a product that is this months fad, or is it something that will be useful for quite sometime." When i wrote it, I was thinking along the lines of Xenga or Groupon.

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