I have a feeling that we will have a small rally and then just keep grinding to new lows like The Great Depression.
WFC is about to hit $14. If you took my advice and got in at $8 things are looking pretty good for you. If not, you better hurry up. New mortgages were up in February and most banks seem to be profitable again already, with Citi and JPM supporting this.
As long as Obama doesn’t do anything to screw us and the Wachovia deal starts to pay off, dividends will go back up fast and this stock could easily hit $25-30 by the end of the year.
This one is risky, but I I bought a truckload of Citigroup (C) at $1.26 early this week. As I write, it’s trading at $1.66
52 week range is $0.97 to $27.35.
Downside is nationalization.
Updside is interesting. CEO Vikram Pandit announced this quarter will be profitable.
I’m not betting to get rich on this one, but seeing the opportunity to sell this one at $3-5.00 in the next 6 months isn’t unrealistic either and would make a nice profit.
I worked for Citi for 7 years and left 2 1/2 years ago. Thank goodness I was able to dump my stock awards and options at $50.35
As others have mentioned, GE is worth noting. I don’t have a current position, but may make a move soon.
Ge is a bargain at these levels. It’s also like a mini mutual fun with all the industries it’s in.
Banks are a contrarian dream right now. Boa and Citi.
Long haul I still like energy.
Definetly gold and Wal-Mart.
Did any of you take my advice and buy some Citi when it was dirt cheap last week?
If you had purchased $1000.00 of AIG stock one year ago, it would now be worth $49.00.
With Fannie Mae, you would have $16.50 left of the original $1000.
With Bear Stearns, you would have less than $5.00 left.
If you had purchased $1000.00 of Freddie Mac stock you would have $49.00 left.
If you had purchased Lehman Bros., you would have nothing left.
But, if you had purchased $1000.00 worth of beer one year ago, drank all the beer, then turned in the cans for recycling, you would have $214.
Based on the above, the best current investment advice is to drink heavily and recycle.
This is called the 401-Keg Plan.
[quote]Headhunter wrote:
Bear Market rally underway; play it if you dare!!
[/quote]
I just went all in short this afternoon. This rally is a joke.
There is an old saying, “You can own a Bull, but you can only trade with Bears.” We are still in a bear market. I think we will be until we have some resolution of all the off the book losses that finacial companies have. Currently most of the losses due to investments that banks have outstrip their cash reserves.
That said I think we are in the bottoming process and it might be the time to take the S&P 500 and hold on.
Beyond that I am going to be the crazy one and rec Goldman. Everyone at the firm is paid to figure out how to make money and they are going to finda a way however the rest of the financial sector goes. (Realize I am totally smoking crack when I say this.)
Headhunter wrote:
BigJawnMize wrote:
Did you do the short sell transactions yourself, or did you buy into a fund that does shorts? I would think that doing short sell transactions oneself is extremely risky, unless one has vast resources relative to the value of any one stock that one short sells.
[quote]NealRaymond2 wrote:
Headhunter wrote:
Bear Market rally underway; play it if you dare!!
BigJawnMize wrote:
I just went all in short this afternoon. This rally is a joke.
Did you do the short sell transactions yourself, or did you buy into a fund that does shorts? I would think that doing short sell transactions oneself is extremely risky, unless one has vast resources relative to the value of any one stock that one short sells.
[/quote]
Currently it is in a short bias ETF. When I have general impressions about the market I feel that is the best way to go. The more confident I am the more I am willing to use an ultrashort, this one I am just shorting.
Not to say that I don’t short individual stocks. I llok for things trading on there name after losing their competative advantage. My best on this year was Garmin. When it got to the point that the only difference between them and a cell phone company was a GPS chip, they were screwed.
[quote]JN7844 wrote:
As others have mentioned, GE is worth noting. I don’t have a current position, but may make a move soon.[/quote]
Bought a bunch at just over $6. Its now $11. It was a short squeeze. It should rise to $18 at least, unless the market tanks again. That shouldn’t happen just yet.
Once investors realize Obama is incompetent though, the market will panic downward.
[quote]BigJawnMize wrote:
Headhunter wrote:
Bear Market rally underway; play it if you dare!!
I just went all in short this afternoon. This rally is a joke.[/quote]
Long-term, yes. The PE on the S&P is still too high.
You’re going to get caught here with a bear bounce, if you’re shorting. Some stocks will be good plays, of course, but you’re fighting an up market.
[quote]Headhunter wrote:
BigJawnMize wrote:
Headhunter wrote:
Bear Market rally underway; play it if you dare!!
I just went all in short this afternoon. This rally is a joke.
Long-term, yes. The PE on the S&P is still too high.
You’re going to get caught here with a bear bounce, if you’re shorting. Some stocks will be good plays, of course, but you’re fighting an up market.
[/quote]
I was in a little too soon yesterday and lost a bit. Currently today the trade is showing a 5% gain, so I am up about 3%. This is nothing I am attached too, definitely feels like I am fighting the market.
[quote]Headhunter wrote:
JN7844 wrote:
Once investors realize Obama is incompetent though, the market will panic downward.
[/quote]
I think the market has a pretty good idea of this. Geitner s there type of guy though.
50 Crossing 200 — buy