Stock Market

[Fire0nice228]

What do you think of Ford? I am in my mid 20s right now and have just started dabbling in investing. I think Ford is turning things around and have been watching for awhile now.. I bought some shares when it was at 10.03, but I think I may get some more shares.. Do you think the UAW will accept the deal or deny it? If they deny I see the price going down, but if they accept, has the market 'priced in' them accepting it or will it jump up and I should buy before it goes any further? A few major plants are voting on Mon/Tues so I'm trying to hold off to see.. but I see some comments here where theres a few thinking the entire market will go down this coming week..

[JeffDFD]

What do you think of Ford? I am in my mid 20s right now and have just started dabbling in investing. I think Ford is turning things around and have been watching for awhile now.. I bought some shares when it was at 10.03, but I think I may get some more shares.. Do you think the UAW will accept the deal or deny it? If they deny I see the price going down, but if they accept, has the market 'priced in' them accepting it or will it jump up and I should buy before it goes any further? A few major plants are voting on Mon/Tues so I'm trying to hold off to see.. but I see some comments here where theres a few thinking the entire market will go down this coming week..

Well, if you are just "dabbling" in investing, you really shouldn't have a large portion of your money in any one investment (unless it happens to be a diversified fund composed of many different stocks). Another thing I am wondering is you say "some shares." Now, I don't know you and 100k may be nothing to you, but if you truly mean just a handful of shares - be cognizant of the commissions you are paying. Oh and also...don't base your investment decisions based on a message boards advice! Ha, but I get what you are trying to say.

Unfortunately, as far as Ford specifically goes, I am not much help and haven't been following the news around it.

[Fire0nice228]

I have 55 shares of F right now.. I have 6 different stocks. BYI I have 50 shares of. That and F are my two main ones. I dont know if that'd be considered a handful of shares or not, but I assume cause its not alot of $ worth of shares. I've had the BYI for a long time as my uncle set my account up as a custodial account before I turned 21 and bought the BYI right before PA put in the casinos. So, it has done quite well. I am debating to sell maybe half of those shares and reinvest the money into something new because those shares make up quite a large percentage of my portfolio by $ amount. But, I want to start early and young on saving for retirement or whatever later in life and I know now is probably a good buying time for someone my age. I wish I had the money in 2008. So, I'm just looking long term. I know not to make decisions off of a board like this but I just wonderin what you guys may think about my situation cause your all probably more versed in investing than I am just yet. For example I have no idea how to read those charts really. lol.

[ExPatriatePen]

LOL @ Netflix

I haven't seen this kind of implosion in a long time, unless it was related to an accounting irregularity or Fraud.

This is just a change in market direction.

[ExPatriatePen]

I'm not feeling very good about the markets reaction to the news out of Europe tomorrow.

Expectations seem to be high, but I don't think the vote in Germany is going to Wow the market, so I expect a lot of "Selling on the news".

Gold may be "back down" to an attractive level here. Even after today's $50 rise.

[KennyTheKangaroo]

LOL @ Netflix

I haven't seen this kind of implosion in a long time, unless it was related to an accounting irregularity or Fraud.

This is just a change in market direction.

there was a blurb in the WSJ on netflix in its heard on the street section. it showed a graph of netflix's stock price from 2009 to current. The only thing to say is

[ExPatriatePen]

First Solars CEO steps down.. Stock off almost 20%

There's money to be made in shorting these once high flyers like Netflix and First Solar.

Is Open Table next?

[ExPatriatePen]

Chipotle starting to weaken... I actually see these "valuation adjustments" as net positive for the market as a whole.

But I really see some turmoil coming tomorrow in the broader averages.

[mac5155]

EPP, is it wise for my girlfriend, Walmart employee, to purchase $50 of their stock bi weekly?

[ExPatriatePen]

EPP, is it wise for my girlfriend, Walmart employee, to purchase $50 of their stock bi weekly?

I'm assuming we're talking about a ~30 year old with an employer match (of some %)?

And you're asking me if she should average in on a stock that has a great management team and has somewhat languished in value while the parent company continues to be stable and profitable?

Ummmmm... absolutely.

However, my biggest caveat... is to make some other investments as well. (not just Walmart)

I have a friend who worked for Phillip Morris for Decades. It was his only holding. He's done extremely well. He's holding almost a million in hisw retirement account and retired in 2009 at 60 years old. But I have multiple friends who have not faired so well doing the same.

I have a neighbor who worked for Bear Sterns for 38 years. He was 63 years old in 2007. He was sitting on 1.4 Million in his retirement account. All in Bear Sterns stock. In 2008 he lost 1.15 Million of that. Today he works as a clerk in the county offices. Thankfully he had been active politically and they found a job for him. He hopes to retire by the time he's 75.

[thehockeyguru]

EPP, is it wise for my girlfriend, Walmart employee, to purchase $50 of their stock bi weekly?

Your not going to get rich off of Walmart stock, but it pays a 2.57% dividend. Are you inferring that this is an Employee Stock Purchase program and she is eligible to purchase shares at $50 per? Or is she simply investing that amount into company stock with an employer match?

[mac5155]

EPP, is it wise for my girlfriend, Walmart employee, to purchase $50 of their stock bi weekly?

Your not going to get rich off of Walmart stock, but it pays a 2.57% dividend. Are you inferring that this is an Employee Stock Purchase program and she is eligible to purchase shares at $50 per? Or is she simply investing that amount into company stock with an employer match?

That's her biweekly contribution which employer matches some. Not sure of the amount. But she's 401k in eligible for a year so I suggested upping the stock until 401k can be kicked in then splitting them up into 2

[Tomas]

EPP, is it wise for my girlfriend, Walmart employee, to purchase $50 of their stock bi weekly?

It may not be a bad idea if the company offers to sell the stocks at a discount or of there is some matching scheme attached to the purchases, but remember that:

1. You should view everything you put in stocks as a (very) long-term investment. The average maturity of investment in US stocks is about 10 years (i.e. about 10 years pass from a time of purchase to the sale) - and it is for a reason. Due to quite extreme fluctuations of (especially individual) stocks, the investment really pays off only if you can keep it for a long time (stocks generally yield ~10% per year) and you can average out good and bad years.

Just FYI: here are stock retuns (S&P 500 including dividends) for various windows *if* the investment started in 1951 or later (the results for individual stocks would be worse):

15 years:
Min = 4.30% p.a. (for investment ending 1974)
Max = 18.80% p.a. (for investment ending 1999)
Median = 10.76%

20 years:
Min = 6.52% p.a. (1978)
Max = 17.69% p.a. (1999)
Median = 11.29% p.a.

25 years:
Min = 7.95% p.a. (1981)
Max = 17.10% p.a. (1999)
Median = 10.39% p.a.

30 years:
Min = 9.43% p.a. (1985)
Max = 13.63% p.a. (1999)
Median = 10.80% p.a.





2. Individual stocks (unlike baskets of stocks in the form of mutual funds or ETFs) should NOT be a part of your retirement account - ESPECIALLY if it's the stock of your employer (in that case you are totally undiversified, and if the company goes down - you'd lose both your job and your savings).

[ExPatriatePen]

Ex Goldman Sachs, Proctor and Gamble board member Rajit Gupta arrested!

Yea!

[ExPatriatePen]

If Amazon drops below $200 a share, it looks really attractive down here.

[KennyTheKangaroo]

Gupta is a scumbag

[ExPatriatePen]

Gupta is a scumbag

I think they should take both Gupta and Rajaratnam and march them down to Zuccotti park and let the OWS folks have their way with them.

[KennyTheKangaroo]

You know, its arrogant d-bags like those two clowns that give a little creedence to the OWS movement. There is plenty to not like about OWS, but in a big way, they have a point: There are a lot of jagoffs on wall street.

[JeffDFD]

Curious to those who post/read here:

Do you buy and sell a lot or do you buy/hold (how long), dividend invest or what? How is your portfolio divided up (large cap, small cap, foreign, etc)and why? Mainly individual stocks or mutual funds, etfs? I am curious as to some of the strategies here.

[thehockeyguru]

Curious to those who post/read here:

Do you buy and sell a lot or do you buy/hold (how long), dividend invest or what? How is your portfolio divided up (large cap, small cap, foreign, etc)and why? Mainly individual stocks or mutual funds, etfs? I am curious as to some of the strategies here.

All the stocks I own are high dividend yielding stocks that I started buying once I graduated from college. I haven't sold any of them nor do I plan to and I've been reinvesting the dividend.

[KennyTheKangaroo]

Kenny the kangaroo has 3 accounts:

Employer SIMPLE plan-no trading at all done here. just one mutual fund 60/40 as far as stocks and bonds are concerned. outrageous sales load

Roth IRA-no trading done here, three mutual funds. about 60/40 stocks/bonds.

"Fun" online brokerage account-no real trading, mostly buy and hold, but will sell stocks when/if kenny the kangaroo feels like they are ready to be sold. the last time kenny the kangaroo sold a stock was june. last purchased was mid-august, during the heart of the debt debate. largest stock holding is CSX, the largest holding overall is a municipal bond etf. if/when kenny the kangaroo buys a house/gets married (:shock: )/buys a boat/whatever, this migth be the the $$$ used.

kenny the kangaroo is very fortunate that a lot of the stocks/etfs purchased in the "fun" account were purchased between January and November 2009. its easy to look/feel smart when the first time you have enough $$$ to invest corresponds with the markets emergence from rock bottom.

[ExPatriatePen]

Curious to those who post/read here:

Do you buy and sell a lot or do you buy/hold (how long), dividend invest or what? How is your portfolio divided up (large cap, small cap, foreign, etc)and why? Mainly individual stocks or mutual funds, etfs? I am curious as to some of the strategies here.

YES

Spoiler:

Seriously though, it depends on the objective of the investment (Retirement, "Mad Money", risk tolerance, etc...) But I've made all of the types of investments you mention at one time or another

[JeffDFD]

Curious to those who post/read here:

Do you buy and sell a lot or do you buy/hold (how long), dividend invest or what? How is your portfolio divided up (large cap, small cap, foreign, etc)and why? Mainly individual stocks or mutual funds, etfs? I am curious as to some of the strategies here.

YES

Spoiler:

Seriously though, it depends on the objective of the investment (Retirement, "Mad Money", risk tolerance, etc...) But I've made all of the types of investments you mention at one time or another

Well what do you do and hold now?

[ExPatriatePen]

Curious to those who post/read here:

Do you buy and sell a lot or do you buy/hold (how long), dividend invest or what? How is your portfolio divided up (large cap, small cap, foreign, etc)and why? Mainly individual stocks or mutual funds, etfs? I am curious as to some of the strategies here.

YES

Spoiler:

Seriously though, it depends on the objective of the investment (Retirement, "Mad Money", risk tolerance, etc...) But I've made all of the types of investments you mention at one time or another

Well what do you do and hold now?

Mostly drink as much single malt as I can to forget my losses in high Beta stocks over the last eight months.

Seriously, recently I've been focused on high yielding international issues like Phillip Morris (PM) and Caterpiller (CAT).

There's real money in shorting momentum stocks that are coming back to earth as we've seen in First Solar and Netflix... Maybe NAUN or OPEN or Select Comfort, etc...

I haven't been real successful in shorting though, so I'm looking for stocks like Monsanto, or Amazon, that have been beaten down here recently in value while the underlying fundamentals remain strong.

I'm also a firm believer that precious metals are still a great asset even at these levels.

[Fire0nice228]

I wish I had the money to put into stocks like Amazon or CAT.. lol..

Theres soooo much out there it seems to be so hard to pick for a newbie as myself..