theeohiostate Posted November 29, 2008 Share Posted November 29, 2008 Just recently took control over my SEP , sold all my mutual funds and went with individual stocks to try to take opportunity of some fine companies surely well undervalued. I don't see much stock talk in the forum, but I'm sure there are many of you that buy and sale your retirement accounts or play money. What stocks are you liking for the next year and why ? I don't have anything in the Energy or Financial sector, although this was a good week for financials especially. Please share some of your advice to some of us new investors. Quote Link to comment Share on other sites More sharing options...
tonorator Posted November 29, 2008 Share Posted November 29, 2008 picked up some GE during this mess. got in in the 15's. company has confirmed their 2009 dividend (~8%) and is doing well in all areas outside of the financing arena. i like how it is poised to take advantage of all the changes coming on the energy front. strong endorsement today from the motley fool that makes most of my points for me. so buy a bunch so my shares will go up. Quote Link to comment Share on other sites More sharing options...
BeeR Posted November 29, 2008 Share Posted November 29, 2008 strong endorsement today from the motley fool I used to think that meant something. I'm still likin Ford...... Quote Link to comment Share on other sites More sharing options...
wiegie Posted November 29, 2008 Share Posted November 29, 2008 to take opportunity of some fine companies surely well undervalued. Question: what do you know about these companies that the rest of the market does not? Quote Link to comment Share on other sites More sharing options...
Jackass Posted November 29, 2008 Share Posted November 29, 2008 (edited) Question: what do you know about these companies that the rest of the market does not? You beat me to it. When you're buying, chances are, people who know a lot more than you are selling. Unless you're prepared to spend a lot of time following the stocks you invest in, and you know what you're doing, I'd be very wary of putting all or most of your retirement in individual stocks. Edited November 29, 2008 by Jackass Quote Link to comment Share on other sites More sharing options...
theeohiostate Posted November 29, 2008 Author Share Posted November 29, 2008 Question: what do you know about these companies that the rest of the market does not? Just because a stock is down, really has nothing to do with if the company is solid or not. There are some very good stocks that have tanked for only one reason.....the entire market has went down. I think everyone knows this. Quote Link to comment Share on other sites More sharing options...
wiegie Posted November 29, 2008 Share Posted November 29, 2008 Just because a stock is down, really has nothing to do with if the company is solid or not. There are some very good stocks that have tanked for only one reason.....the entire market has went down. I think everyone knows this. If everyone knows this, how come everyone hasn't already jumped in and bought the undervalued stocks until the price of these stocks increased to the point at which they were no longer undervalued? Quote Link to comment Share on other sites More sharing options...
theeohiostate Posted November 29, 2008 Author Share Posted November 29, 2008 If everyone knows this, how come everyone hasn't already jumped in and bought the undervalued stocks until the price of these stocks increased to the point at which they were no longer undervalued? economic uncertainty ? Maybe many small investors are already buying these stocks, but not near enough to move the market. The big money is still on the sideline I would imagine ? Quote Link to comment Share on other sites More sharing options...
keggerz Posted November 29, 2008 Share Posted November 29, 2008 Just because a stock is down, really has nothing to do with if the company is solid or not. There are some very good stocks that have tanked for only one reason.....the entire market has went down. I think everyone knows this. doesn't mean it isnt still overvalued or couldnt fall even farther Quote Link to comment Share on other sites More sharing options...
tazinib1 Posted November 29, 2008 Share Posted November 29, 2008 I came within a click of the mouse of buying AIG stock at $1.25 but couldn't do it. I hope I'm not kicking myself a year from now. Quote Link to comment Share on other sites More sharing options...
polksalet Posted November 29, 2008 Share Posted November 29, 2008 I just moved some out of my ML goalmanager thing. I put 25%in a Russell 2000 Index fund. Investing in single stocks is for people with far more knowledge than I have. Quote Link to comment Share on other sites More sharing options...
theeohiostate Posted November 29, 2008 Author Share Posted November 29, 2008 I just moved some out of my ML goalmanager thing. I put 25%in a Russell 2000 Index fund. Investing in single stocks is for people with far more knowledge than I have. What was the index fund ? I moved into BGU - FAS and TNA all 3X , they have been doing great and I like all 3 short term (6 months) Quote Link to comment Share on other sites More sharing options...
Chavez Posted November 29, 2008 Share Posted November 29, 2008 If everyone knows this, how come everyone hasn't already jumped in and bought the undervalued stocks until the price of these stocks increased to the point at which they were no longer undervalued? You worship the efficiency of the market too much. The market may be efficient in a vacuum, but people act irrationally. I'd bet money there are stocks out there trading WAY under what their P:E says they should. Witness the flurry of activity surrounding quarterly earnings - if you're in a buy-and-hold position (which covers most individual stockholders), one quarter up or down shouldn't really make that big of a difference. Of course, churning is very profitable for the brokers, so that's probably why it leads to the big buy/sell-offs. Market inefficiency at its finest. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted November 29, 2008 Share Posted November 29, 2008 You worship the efficiency of the market too much. The market may be efficient in a vacuum, but people act irrationally. I'd bet money there are stocks out there trading WAY under what their P:E says they should. Witness the flurry of activity surrounding quarterly earnings - if you're in a buy-and-hold position (which covers most individual stockholders), one quarter up or down shouldn't really make that big of a difference. Of course, churning is very profitable for the brokers, so that's probably why it leads to the big buy/sell-offs. Market inefficiency at its finest. As I said in another thread... right now is probably one of the top 5 worst times in US History to argue that the market knows what it is doing. I'm sure that there are experts out there that know what they are doing, and I'm not sure that even 40% of the trading that happens is done by those people. Quote Link to comment Share on other sites More sharing options...
Randall Posted November 29, 2008 Share Posted November 29, 2008 Nothing since march. Quote Link to comment Share on other sites More sharing options...
BeeR Posted November 30, 2008 Share Posted November 30, 2008 For the moment, leaving a lot of it in cash reserves. Only making a small % but beats the flip out of losing ground. I'm sure my CC stock will rebound any day now Quote Link to comment Share on other sites More sharing options...
billay Posted November 30, 2008 Share Posted November 30, 2008 "When everyone in the market is fearful, be greedy. When everyone in the market is greedy, be fearful." Warren Buffett Quote Link to comment Share on other sites More sharing options...
Chavez Posted November 30, 2008 Share Posted November 30, 2008 "When everyone in the market is fearful, be greedy. When everyone in the market is greedy, be fearful." Warren Buffett You sure that wasn't Siddhartha? Quote Link to comment Share on other sites More sharing options...
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