Official Investing Thread

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

  1. Rabid

    Rabid Fan of: DQ Treats
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    No idea why their minimum is lower than industry norm. All my HY money is either in individual bonds I bought when the world was ending or in FJSIX. I won't pretend to be objective on HY funds. I go with people I know and trust or with myself in that arena.
     
  2. Rabid

    Rabid Fan of: DQ Treats
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    In theory if the CFO/Treasurer is good it should lower the WACC. That is good for stocks. In a bad market the answer may change.
     
  3. Capstone 88

    Capstone 88 Going hard in the paint
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    Another thing about issuing debt is that the interest expense is tax deductible where an equity issue isn't. Which would raise NOPAT which would increse FCF
     
  4. DutchTiger

    DutchTiger Well-Known Member
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    Someone tell me about tell me about getting a position in a stock on the date or record (i think that's what it's called... I'm referring to the day that anyone owning that stock gets the dividend?) and selling it when the price reaches the price that you bought it for. One of my professors claims he used to do this...this just seems too easy.
     
  5. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    yup that's the record date. sounds like it should work in theory but you'd be paying a bunch of commissions going that route (depending on how many securities you're moving). also unless you're in an IRA you'll pay taxes on the dividend & capital gains when you sell the shares. without crunching #s from any specific example, that doesn't sounds like it'd pay off ...
     
  6. Rabid

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    If nothing else changes (no incremental news or economic data, etc) the stock price should decline by the amount of the dividend. There isn't alpha in the strategy.
     
  7. Hogview

    Hogview Fan of the Green board, Razorbacks
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    Yep, if the company has a share at $15 and giving .45 the stock drops to 14.55 and their is no negative impact on the company.
     
  8. Rabid

    Rabid Fan of: DQ Treats
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    Kellogg really shit the bed this morning. Further proof Minnesota > Michigan IYAM.
     
  9. Rabid

    Rabid Fan of: DQ Treats
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    My company announced yesterday that we are being sold. It sounds like good news though. Our fund was bigger and had better performance than their existing fund so the other fund is being folded in to ours. My fund should grow ~33% later this year at completion of the merger!

    :beerchug:
     
  10. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    congrats Rabid ... what does it cost to buy-in? discounts from TMBers?? :gfa:
     
  11. Rabid

    Rabid Fan of: DQ Treats
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    I don't have a clue...4%-5%???

    No fee for me. :smile:

    I'll try to give a run down of some companies reporting next week with my predictions later today.
     
  12. Hogview

    Hogview Fan of the Green board, Razorbacks
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    Who you be workin fo
     
  13. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    :ohgosh:
     
  14. Rabid

    Rabid Fan of: DQ Treats
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    Tuesday
    ADM: If Bunge (BG) earnings are any indication of what lies ahead for Archer Daniels-which I think they are-ADM is likely to miss. BG reported a loss of $0.57 vs. consensus of $1.35 (Wow!) on weak oil seed processing volumes. Some of this may have been priced in on BG's miss but I would avoid.
    DOLE: CQB actually traded up today after what I thought was a mediocre qtr & outlook. I think there is downside risk to Dole on weak European banana pricing (admittedly more important to CQB) and higher banana costs in Latin America (commodity costs are ~+11% YoY).
    TRS: A little followed small cap that I own. I have a positive bias as many manufacturers I follow have been strong coming out of the recession. I expect a beat and raise this quarter which would be similar to IR, CAT, CNH, etc.
    EMR: See TRS. Beat and raise.

    Thursday
    KFT: Given the exposure to emerging markets (very strong right now) the top-line should be solid although Euro exposure will offset some of that and poses a risk. The key is going to be the process of the merger integration with Cadbury. I have a positive bias here but there is definitely some risk.

    Top pick for the week: TRS
    Top pan for the week: ADM
     
  15. Capstone 88

    Capstone 88 Going hard in the paint
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    Opening a brokerage account today. Anyone have any experience with TradeKing? No minimum balance and $4.95 per trade any trade $0.60 option contracts.
     
  16. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    lots of green in my account today :chatzy:

    Alcoa Inc. AA 11.66 +0.49 (4.43%)
    Ford Motor Company F 13.17 +0.40 (3.13%)
    Pfizer Inc. PFE 15.40 +0.40 (2.67%)

    :woot:
     
  17. ColeTrickle

    ColeTrickle 1-0 Culture, LLC
    Staff Donor
    Texas LonghornsTexas Rangers

    Just got access to some mutual funds set up by my grandparents. They've gone down $600 since I set up the account last week :curses:
     
  18. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    down $600? it's been a reaaaally good week/month for equities ... where are they invested?
     
  19. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    bump for Cole, whatchu got homez? if it's in equities it really shouldn't be down at all IMO ...
     
  20. Rabid

    Rabid Fan of: DQ Treats
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    Does it approximate 4%-5% of the investment? It could be the front end sales charge.
     
  21. Capstone 88

    Capstone 88 Going hard in the paint
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    Joe I was looking at some clients 401k's the other day and some we're down some weren't even keeping pace with inflation. I think some of these managers aren't performing as well as they should
     
  22. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    depends on the time horizon you're looking at. Vanguard's Total Stock Market Index is down 6.09 for the last 3 years from 7/31/10 ... but last July was the biggest 1-month gain the market has seen in the last year (pretty sure i read that on CNNMoney today) and the last week has been especially good. would be very fishy IMO if an equity mutual fund, indexed or actively managed, to be down substantially since last week. unless it's very sector driven ...

    i think Rabid's idea make sense, could be a front end load
     
  23. Capstone 88

    Capstone 88 Going hard in the paint
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    Yea after I typed that I forgot to give a time period.
     
  24. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    well you are right that this mutual's advisor must suck balls if it's down for the last week. unless it's got like 3 stocks in it ...
     
  25. Rabid

    Rabid Fan of: DQ Treats
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    Way off on ADM as they beat by $0.17 and the stock is up 2%. However, the TRS call was on the money as they reported $0.44 vs. $0.23 estimate and raised guidance to $0.90-$1.00 from $0.65-$0.75. TRS is up ~6%. EMR beat ($0.78 vs. $0.68 est) and raised ($2.60-$2.70 from $2.40-$2.60) so the stock is up ~1.5% this morning.
     
  26. Hogview

    Hogview Fan of the Green board, Razorbacks
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    The ether was wearing off. The acid was long gone. But the mescaline was running strong. Good mescaline comes on slow. The first hour is all waiting. Then about halfway through the second hour, you start cursing the creep who burned you because nothing's happening. And then - ZANG!

    Good morning my Investing buddies :cerealkiller:
     
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  27. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    PFE doing work :chatzy:
     
  28. triceratops

    triceratops Tribe Of Dan
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  29. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    yeah it's drawing back a good deal today ... i purchased too high i think :curses:

    why is it coming back? i saw a note on Thomson Reuters that their July sales were up 3.7%. lots of share holders capping their gains i take it? stock has been on a nice ride recently i suppose ...
     
  30. triceratops

    triceratops Tribe Of Dan
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    Said sales didn't beat estimates of 5%
     
  31. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    didn't think sales estimates would have that impact ... EPS beat the estimates big time last week IIRC. well no matter, i plan on holding that one for at least a year ... PFE on the other hand i may have to consider selling if it stays this hot ...
     
  32. Hogview

    Hogview Fan of the Green board, Razorbacks
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    Yal mafuckas needs to be shortin an shit, na mean
     
  33. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    na whatya mean ... not quite at that level of investing personally :beerchug:

    i'd like to starting messing with some long calls first, try to do some research and play them pre-estimates
     
  34. Goose

    Goose Hi
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    May sound like a dumb question but I want to purchase some stocks.

    Say I wanted to buy 5 shares from some company that were valued at $5 each. And say the online broker I was using charged like $7 per trade. Does that mean I would pay $32 or $60.

    Im pretty much asking if that fee is charged per stock, or purchase.
     
  35. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    per transaction. whether you purchase 5 shares or 5000, if it's part of the same transaction (and same security) it should be one commission. in your situation you'd pay $32
     
  36. Goose

    Goose Hi
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    Thanks :rain:
     
  37. Hogview

    Hogview Fan of the Green board, Razorbacks
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    If your in FL,TX, or AR I got you mayne. I can get yo ass in and outs when need bees.
     
  38. Goose

    Goose Hi
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    Ohio, but Im looking into investing in an oil company. I really want to buy some stock in BP. They've gone up about 12 points in the last week. Then when the price gets back up to around where it used to be(in the 60s) I want to sell it, then use that money to invest in Exxon. Exxon recently purchased XTO energy which is one of the leading Natural Gas companies. And natural gas I was told was going to get big.
     
  39. Capstone 88

    Capstone 88 Going hard in the paint
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    I think energy is going to be a good play long term
     
  40. Hogview

    Hogview Fan of the Green board, Razorbacks
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    I talked a little about nat gas in this thread, it will become a good buy later. If you want to be a short term investor go ahead and buy nat gas right now. It wont drop much more, but will go up if this hurricane becomes a threat.
     
  41. Goose

    Goose Hi
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    So what you're saying is, Hurricanes make stock prices in nat gas go up?
     
  42. Hogview

    Hogview Fan of the Green board, Razorbacks
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    If it does some damage to rigs out in the gulf, driving the price of oil up, you'll see it jump. It wont double but it will bring you some profit.
     
  43. Goose

    Goose Hi
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    Thanks. I feel like Ive learned more about stocks in the last ten minutes than I did in Econ 101 and 102.
     
  44. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    BP ... idk, just seems like a tricky stock right now. i think everyone that is a value investor is thinking what you're thinking. it's actually about $12 away from it's 52-wk low ... so are you getting the low price? they just posted an awful quarter, yet today it's up .52. IMO they are a tough company to judge right now from a fundamentals standpoint, unless you're making your purchase off some technical data i feel like it'll be pretty hard to determine if you're buying low or high ...

    JMO but there are other value plays that are easier to predict (IE, still have good financials) and also cost less per share. i think you could make that same play w/ GE, have the same expectations for upward movement, and clock some dividends at the very least ...
     
  45. Rabid

    Rabid Fan of: DQ Treats
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    I short things from time to time. My last short was PJC from $51 to $32 earlier this year. :smugdog:
     
  46. Capstone 88

    Capstone 88 Going hard in the paint
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    Hard to value BP because of the uncertainty of the lawsuits heading their way. A value stock I like is UPS. Hardly any volatility and they're a pretty solid company
     
  47. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    how are y'all playing this?

    "The dollar dropped 0.8% to a new three-month low, with most of the slide owed to a 0.9% rise in the euro to a near three-month high. The Dollar weakness pushed commodities higher, helping both energy and material stocks. Alcoa (NYSE:AA), the aluminum producer, and Exxon Mobil (NYSE:XOM), the U.S. largest energy producer, led the Dow Jones Industrial Average. Alcoa rallied 4.83% and Exxon jumped 3.79%."
     
  48. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    good write up on Ford

     
  49. Hogview

    Hogview Fan of the Green board, Razorbacks
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  50. Rabid

    Rabid Fan of: DQ Treats
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    I bought VHI last week.