Official Investing Thread

Discussion in 'The Mainboard' started by Joe Louis, Jul 12, 2010.

  1. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

    INTC went up 1.13% today, of course, after i sell

    but i cant regret that shit, i made my $ with them
     
  2. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    Michigan WolverinesDetroit Tigers

    yeah dude i feel like we could a mixed market for a bit. people will take profits some places and look to re allocate in others. DFS freaked me out this morning, opened way higher than Friday's close than dropped like .40 immediately, then rallied back to close even. still looooooove everything i read about this stock ...

    looks like $50+ still reasonable on JPM, got a few boosts from analyst reports today, everyone seems to have it somewhere above $50 ...
     
  3. DollarBillHokie

    DollarBillHokie Usher is the worst
    Donor
    Virginia Tech HokiesTiger Woods

    If your margin of error is 1.13% you need to rethink your investment strategy.
     
  4. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

    its not, but 100 bucks more in my pocket woulda been nice. and this is me playing with barely 5 grand and im a student, so i cant sling big ass numbers around
     
  5. DollarBillHokie

    DollarBillHokie Usher is the worst
    Donor
    Virginia Tech HokiesTiger Woods

    Understood, I'm just saying you shouldn't care what the stock does after you sell it unless you are trying to reenter the position. You will always miss on timing, so there is no need to stress over it.
     
    Joe Louis likes this.
  6. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

    cliffs: fuck you obama​

    How to Handle the Coming Dividend Tax

    Hough: Will the favorable tax treatment on dividends go away at the end of 2012, even as Apple and other companies roll out new dividends?

    Apple (AAPL)'s dividend announcement this past week is good news for income investors, but bad news might be lurking around the corner.

    Unless Congress takes action, the top tax rate for the highest earners on most dividends, currently 15%, is set to jump to a whopping 43.4% next year. That is a maximum income-tax rate of 39.6% -- since dividends will once again be taxed as regular income -- plus a 3.8% tax on investment income as part of the health-care overhaul passed in 2009.
    Higher dividend taxes could take some luster off dividend-paying stocks -- and because the market is forward-looking, the fear is that their prices will fall sooner rather than later.
    Dividend investors could protect themselves in the short term by placing options bets on a broad decline in dividend-paying shares, but that strategy is expensive. A better course for most is to seek a balance of income and growth stocks. In the income-stock portion, investors should favor those that promise to boost their dividend payments over those that merely have the largest "dividend yields," or payments as a percentage of their stock prices.
    Apple's new dividend payments of $2.65 each quarter, set to begin July 1, give it a yield of 1.8%, calculated against its current stock price.
    Apple is hardly alone in bowing to growing investor demand for yield. Last year brought a record 22 dividend initiations by companies in the Standard & Poor's 500-stock index. There have been five so far in 2012.

    There is plenty of room for more and bigger payments. While 397 S&P 500 companies pay dividends, the average since 1980 is 413 companies. And payments as a percentage of profits are only 30% now, versus a historical average of 52%, according to S&P.
    All told, dividend spending by S&P 500 companies should increase 15% this year, estimates Howard Silverblatt, senior index analyst at S&P.
    Of course, dividends are only as valuable to investors as the portion left after taxes. The current 15% rate cap comes from a 2003 series of temporary rate reductions that were extended through 2012. On Jan. 1, the rate cap expires, unless Congress acts.
    No one knows how the politics will unfold. Jeremy Zirin, chief equity strategist atUBS (UBS), guesses -- and it is only a guess -- that politicians will settle for "the path of least resistance" with another short-term extension of the cuts sometime after the election.
    For purposes of planning and prudence, investors should assume higher dividend taxes are coming and focus on the likely fallout. History offers some useful clues.
    Companies increased their dividend payments substantially after the 2003 tax cut, but lower taxes weren't necessarily the cause. A 2010 study done for the Federal Reserve Board found that higher profits were the likelier driver. A case in point: Real-estate investment trusts, whose generous dividends don't qualify for the current lower rates, also increased their payments.
    The findings suggest the dividend floodgates won't necessarily slam shut in response to higher taxes come 2013 or beyond.
    Investors also should remember that a dividend-tax rise concentrated on high earners would affect only a small percentage of the population, while a large portion of dividend stocks are held in pensions and other tax-deferred accounts. That should damp the effect of tax increases on the broader market, says Jim Russell, chief equity strategist at U.S. Bank.
    An analysis by Savita Subramanian, head of U.S. equity at Bank of America Merrill Lynch, found "no evidence that the change in the dividend-tax rate had any significant impact on the relative performance of dividend-oriented strategies." Ms. Subramanian found that dividend growth matters much more than tax-rate changes in determining future stock prices.
    Dividend investors might thus want to sell shares of some high-yielding companies that aren't boosting their payments and add some with moderate yields and steady payment growth.
    One easy way is to buy a mutual fund focused on companies with growing dividends, such as T. Rowe Price Dividend Growth or Vanguard Dividend Growth . The T. Rowe Price fund ranks among the top one-quarter of its peers for 10-year performance. The Vanguard fund ranks among the top one-tenth.

    UBS's Mr. Zirin says investors who have too much money in the utility and telecom sectors, which investors tend to seek out for high yields, might want to diversify into consumer staples and industrials, which have lower yields but stronger growth characteristics. Exchange-traded funds like iShares Dow Jones U.S. Industrial Sector (IYJ) and Consumer Staples SPDR (XLP) can offer quick sector diversification.
    Joel Dickson, head of Vanguard Group's active quantitative equity department, says focusing exclusively on dividend stocks is a mistake, because it can leave investors overexposed to large-company value stocks. That was fine last year when the Dow Jones U.S. Select Dividend Index returned 12.4%, versus a 2.1% return for the S&P 500. But so far this year, the dividend index has underperformed.
    With or without the threat of a dividend-tax increase, investors with a dividend-heavy portfolio should consider balancing their approach by adding something as simple as a broad-market index fund, Mr. Dickson says.
    Vanguard Total Stock Market, Schwab U.S. Broad Market (SCHB) and iShares S&P 1500 (ISI) are low-fee choices. And unlike next year's tax rates, next year's fees are something investors can control.
     
  7. southside

    southside Well-Known Member
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    Texas LonghornsSouth Carolina GamecocksHouston AstrosDallas CowboysSeattle Kraken

    Investing words to live by
     
  8. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    Michigan WolverinesDetroit Tigers

    not sure where you got "fuck you obama" from that article ...
     
  9. Room 15

    Room 15 Mi equipo esta Los Tigres
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    Auburn TigersAtlanta BravesAtlanta FalconsUnited States Men's National Soccer Team

    FFN financials coming out on Thursday. I remember a few folks here were invested in them at one point. Could use some good news.
     
  10. 850

    850 >>>--;;;------------->
    Florida State SeminolesNew York MetsNew York GiantsWashington Capitals

    one morning, im going to nail a 20% move in FFN and :rain: :rain: :rain:
     
  11. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    Michigan WolverinesDetroit Tigers

  12. Bert Handsome

    Bert Handsome I'm sorry, the card says Moops
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    Notre Dame Fighting IrishMilwaukee Brewers altMilwaukee BucksGreen Bay PackersTiger Woods

  13. Bert Handsome

    Bert Handsome I'm sorry, the card says Moops
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    Notre Dame Fighting IrishMilwaukee Brewers altMilwaukee BucksGreen Bay PackersTiger Woods

  14. Rabid

    Rabid Fan of: DQ Treats
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    Minnesota Golden Gophers

  15. super city

    super city Well-Known Member

    anyone have an opinion on Fuse Science (DROP) $.345
     
  16. Bert Handsome

    Bert Handsome I'm sorry, the card says Moops
    Donor TMB OG
    Notre Dame Fighting IrishMilwaukee Brewers altMilwaukee BucksGreen Bay PackersTiger Woods

    The following animated GIF chronicles the rise of the HFT Algo Machines from January 2007 through January 2012.
    The bottom axis is the time of day...
     
  17. Room 15

    Room 15 Mi equipo esta Los Tigres
    Donor
    Auburn TigersAtlanta BravesAtlanta FalconsUnited States Men's National Soccer Team

    Not good.
     
  18. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    i see the name popping up all the time but always associated with a pump & dump scheme or somethin ...

    thanks that helps ... pretty crazy.
     
  19. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

    is the rally over? lots of chop this wk
     
  20. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    not ready to switch the thread icon yet but i'm expecting chopiness for a while. gotta be a lot of profit taking in the near future. but WOTS seems to be there's still money on the sidelines so i think will keep things propped up pretty close to these levels. must be a great time if you're a trader though ...
     
  21. Rabid

    Rabid Fan of: DQ Treats
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    Minnesota Golden Gophers

    The EPS # makes it look worse than it really was. I want to look at it when I'm in the office tomorrow but the EBITDA # ($18.9mm) shouldn't be too far off from expectations after the weak 3rd quarter. That is a more meaningful number than EPS.
     
  22. super city

    super city Well-Known Member

    its endorsed by tiger and a lot of athletes...they have some interesting r&d going on...fwiw i got 10000 at .32 so hoping something big happens
     
  23. Hogview

    Hogview Fan of the Green board, Razorbacks
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  24. HogGotti

    HogGotti Arkansas Razorbacks

    Haha, the Rivals MB loved that stock...
     
  25. h.e.pennypacker

    h.e.pennypacker Industrialist Philanthropist Bicyclist
    Indiana HoosiersNotre Dame Fighting IrishChicago BearsWu-tang

    Good catch. Still a part of a longer-term trend, I guess. It wasn't a very sustained drop.

    If you look at the beginning of 1980, there was a more aggressive drop that was still a part of a long-term positive cycle.
     
    Hogview likes this.
  26. Hogview

    Hogview Fan of the Green board, Razorbacks
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    Thank you for the your response :golfclap:
     
  27. super city

    super city Well-Known Member

    if they come out with sub lingual insulin delivery i will too:getmoneyfuckbitches:
     
  28. FAULK

    FAULK Not well liked.
    Donor

    just bought two shares of Pfizer at 22.7 each. i know it's been said already ITT, but based on their two revolutionary drugs coming out at the end of 2012, i'd highly recommend purchasing pronto.
     
  29. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

    2 shares?

    [​IMG]
     
    $abear likes this.
  30. super city

    super city Well-Known Member

    so you make about $5 on a 10% gain...
     
  31. FAULK

    FAULK Not well liked.
    Donor

    :grinch:
    sorry, swimmy. I'm still in school and can't really afford to drop 1K on a stock that's almost $25/share.

    should get on your level, i guess.
     
  32. Biff Bridges

    Biff Bridges The words. You are good with the words man
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    :rain:
     
  33. super city

    super city Well-Known Member

    for 60 your better off buying a penny and flipping it to get your stack:cmonson: up
     
  34. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

    whod you even buy it from? give money to parents to give to a broker? assuming youre 7-10 bucks in the hole buying it, and another 7-10 when selling, youre gonna have to have the stock go up like 30% just to break even
     
  35. FAULK

    FAULK Not well liked.
    Donor

    just bought it and a couple of long-term holders, with no intentions of selling for a long time. lets me watch the market and see what it does and I plan to continue buying shares over the years, letting it help me build actual wealth/gain market experience. also, the stock should rise significantly especially in early 2013, so it was a low-risk buy for a market novice, imo.
     
  36. FAULK

    FAULK Not well liked.
    Donor

    set up an account with tdameritrade. they don't have a minimum $$$ requirement of $500 or $1000 for your initial money transfer.
     
  37. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

  38. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    SWIMFAN gonna need you to tone back the politicking a bit ...
     
  39. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    Michigan WolverinesDetroit Tigers

    so who's buying some auto companies? just noticed F's PE is like 2, GM really low also. if consumer spending is up it's only gonna help their numbers amirite? unless their cars suck (which i don't think is the case today)
     
  40. h.e.pennypacker

    h.e.pennypacker Industrialist Philanthropist Bicyclist
    Indiana HoosiersNotre Dame Fighting IrishChicago BearsWu-tang

    I like Ford. Bought some last August, and will probably buy more here soon.
     
  41. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

    ford, if any

    fuck gm and chrysler
     
  42. ned's head

    ned's head Well-Known Member
    Donor

    I'm trying to finalize my buy and hold portfolio, where the majority of my money is going. I was thinking something like:

    20% bond mutual fund with a DRIP
    15% large cap ETF
    10-15% international ETF
    10% REIT ETF or mutual fund with a DRIP
    10% commodity ETF
    30-35% in individual, conservative equities

    anybody have any thoughts? this is my safer account...I have a much smaller scottrade account where I can play with more speculative stocks.
     
  43. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    to me having that much in individual equities isn't "safe" and combining that with 35% int'l/comm/reit strikes me as even less safe. that said it's a very diverse portfolio and i would say as long as you can resist the temptation to trade (cause i think your balance will fluctuate a lot day-to-day) nothing wrong with it. i love HY bond funds until Rabid or Hogview tell me it's time to get out ...

    and please fellas let me know when that day comes :beerchug:
     
    ned's head likes this.
  44. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    would love me some Chrysler but can you buy Fiat? seeing as how they are expanding to the US with their own lineup it may be a company to check out. GM has a P/E of 5 or so IIRC, hard to overlook that. gonna see what Mr Bloomberg says tomorrow about the economic drivers for automakers (consumer spending was a big one on their list i think). both Ford & GM are way behind the S&P for the last year and seem to be putting up pretty good numbers ...
     
  45. ned's head

    ned's head Well-Known Member
    Donor

    fair enough...appreciate the insight. I was trying to hit the basic asset classes in the safest way possible, which is why I figured the ETF/funds would be the way to go. is there a more conservative option for, say real estate? I should add that I'm 29 and want some upside potential. I'd call it a moderate risk level.
     
  46. SWIMFAN

    SWIMFAN Waiting for 2016: New President, New Coach
    Donor

    gm is still tied up with a lot of heavy SUV vehicles and trucks, not to mention the failure that is the chevy volt

    the f150 gets the best gas out of the big 3 not to mention ford is way out in front on the whole cheap/efficient SUVs which gas hits the 4 dollar avg that psychological benefit will help them more so than the others i would think

    plus the fact people wont buy cars from chrysler/gm for the bailout (myself included) and you have another advantage for ford
     
  47. BP

    BP Bout to Regulate.
    Donor
    Atlanta BravesGeorgia BulldogsAtlanta Falcons

    Chrysler could be interesting with the Dodge Dart coming out. Apparently supposed to get close to 40 MPG
     
  48. Rabid

    Rabid Fan of: DQ Treats
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    Minnesota Golden Gophers

    To me that depends on the diversification within it. If it is one stock, yeah, that is poor diversification. If it is a bunch of stocks with none over ~5% of the overall portfolio and from different sectors or at least no more than 10% within a sector then it seems fine.

    As far as the overall allocation, it depends on your goal and timeframe. To me that is a growth oriented portfolio that your hoping to tap 5 years down the road or later. I'm also curious what is in that 35%. Do you have any small cap stocks in the portfolio? You probably should have some exposure to small/mid caps.
     
  49. Hogview

    Hogview Fan of the Green board, Razorbacks
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    You should be good for a while in HY. The market is pretty low on finding any good buys in HY, thats why my firm is about to start buying up condos in the Miami area for rent. Also, if anyone itt has any insight on the condo market around Miami, please shoot me a reply.