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Stocks

BA - Boeing is still on the upcycle and will be for the next 2 - 3 years.

GS BSC These two investment banks have had a great run up but i think they'll continue to move upward for a while noticing the growing M & A market of the next year

NYX - owning the new york stock exchange right now is not a bad idea, the financial markets will have some huge revolutions over the next couple years with consolidation and new derivative growth like options.

CME - the chicago mercantile exchange

NVDA - has become on of the worlds leading graphics manufacturers and put their business together within the last year to make it more profitable.

GM - yes i may get shot for actually liking them but they're not going bankrupt they're really trying to turn their business around and if you look at their company they only aren't making money in the US, all over the world they are still making money. They should be back in the green by 2008-9
Give it a couple of weeks to see what happens with Delphi but they'll pull it through.

i wouldn't recommend just investing in these picks unless you agree and fully investigate the companies


btw if you have a 401k at work split it 50/50 between these two ETFS.

IJJ iShares S&P MidCap 400 Value Index
IJS iShares S&P SmallCap 600 Value Index

historically they've had the best returns of the major indexes in the US.

what do you guys like / follow?

Re: Stocks

quote:

Originally posted by madhattared GM - yes i may get shot for actually liking them but they're not going bankrupt they're really trying to turn their business around and if you look at their company they only aren't making money in the US, all over the world they are still making money. They should be back in the green by 2008-9 Give it a couple of weeks to see what happens with Delphi but they'll pull it through.

GM's selling their foreign, profitable businesses to pay for losses in the US. Throwing good money after bad. IMHO they should stop focusing on size and market share and instead cut their lines and look after profits. Other than that, I don't really know anything about their operating financials.

Re: Stocks

quote:

Originally posted by madhattared btw if you have a 401k at work split it 50/50 between these two ETFS. IJJ iShares S&P MidCap 400 Value Index IJS iShares S&P SmallCap 600 Value Index historically they've had the best returns of the major indexes in the US.

Since most of the ppl here are probably younger, portfolio theory says you should through in some foreign / emerging market exposure as well. I don't have any recommendations, though.

veiex - vanguard emerging markets fund has done well for me.

watch for major mergers and acquisitions in the biotech industries within the next few weeks as well..

Re: Stocks

quote:

Originally posted by madhattared GM - yes i may get shot for actually liking them but they're not going bankrupt they're really trying to turn their business around and if you look at their company they only aren't making money in the US, all over the world they are still making money. They should be back in the green by 2008-9 Give it a couple of weeks to see what happens with Delphi but they'll pull it through.

They're solid imo as well, also i might get shot for sayin this too but i also thing GE is a safe one. they just have their hands in so much esp the pharmaceutical, biotechnology industries around the world from creating certain plastics used in medicine to a broad range of engineering projects

overview: The company�s services include product services; electrical product supply houses; electrical apparatus installation, engineering, and repair and rebuilding services. Through its affiliate, NBC Universal, Inc., General Electric produces and delivers network television services and motion pictures, as well as operates television stations, cable/satellite networks, theme parks, and program activities in multimedia and the Internet. Through another affiliate, General Electric Capital Services, Inc., it offers an array of financial and other services, including consumer financing, commercial and industrial financing, real estate financing, asset management and leasing, mortgage services, consumer savings and insurance services, and reinsurance. The company has operations in North America, Europe, Asia, and South America. General Electric was founded in 1892 and is based in Fairfield, Connecticut.

also here's an interesting question.. besides stocks and mutual funds blah blah blah.. how else are you spending/saving your money?

Lets first start off with "less risky" ideas for us young guys/girls who can only afford to lose so much..

1) I'm currently looking at high yeild savings accounts (ING) which have a return, if im not mistaken, of about 4% which is pretty high compared to the banks and other accounts ranging between 1-2%

2) CD's anything short term again, we need to eliminate risk "Short-term investing is typically designed to protect capital and minimize or eliminate potential downside risk" im talking 7-day CDs with the option of renew..


So do you guys have any other ideas on how to "make your money work for you"

quote:

Originally posted by LinX also here's an interesting question.. besides stocks and mutual funds blah blah blah.. how else are you spending/saving your money? Lets first start off with "less risky" ideas for us young guys/girls who can only afford to lose so much.. So do you guys have any other ideas on how to "make your money work for you"

GE is a good investment, you won't lose with them, but they're so big they can only grow at about 3 percent a year. they pay a nice dividend around 4% a year if you're looking for a very low risk investment GE is good. but there are better investments out there.

if you want lower risk investments throw your money in money market accounts or corperate bonds and or prefered stock. they all will give a higher return then the risk free rate which is currently at 4.75%

quote:

Originally posted by madhattared if you want lower risk investments throw your money in money market accounts or corperate bonds and or prefered stock. they all will give a higher return then the risk free rate which is currently at 4.75%

thats some sound advice... i just started researching that as well.. im just looking to start a business in the near future i have some ideas and wont go into them right now.. but im just looking to get my hands in as many different things as i can and grow from there.. thats the only way to make money ...

i still can't believe my friend's mom (when i was in highschool) developed some kind of mop and marketed it on HSN and made millions its just insane.. but lately im hearing more success stories and just want to try something new. it cant hurt right

I bought some NVDA back in June when I was building my computer and doing some research into graphics cards and their manufacturers. It's had a nice run since then and I sold when it hit 28 (split adjusted). I don't know about buying in now. Techs aren't looking as cheap as they did back about a year ago when the nasdaq was at about 1950 so I'm kind of betting on a retraction in the sector - although NVDA should do pretty well regardless.

If you really wanna trade GM and are feeling adventurous, I would sell Sept '06 and Jan '07 puts on that bad boy - maybe in the $10 or $12.50 range. Right now, puts are trading at a premium thanks to all the bankruptcy rumors surrounding the company. If you look at the Sept '06 puts, you're getting $115 per contract and have to put up about $400 in margin so you're looking at a possible 30% gain or so through Sept - as long as GM doesn't fall below $12.50 that is. Of course, you could lose $1135 if the company goes bankrupt, but that's what makes it fun...

Anyway, I've been getting defensive recently. I bought a bunch of May '06 puts on the Russell 2000 ETF last week. I'm betting earnings season isn't going to be as much of a blowout as everyone hopes and the fed will likely hint towards rates higher than 5% in May (after a pause maybe) which all should knock down the index a bit.

quote:

Originally posted by Choobak I bought some NVDA back in June when I was building my computer and doing some research into graphics cards and their manufacturers. It's had a nice run since then and I sold when it hit 28. I don't know about buying in now. Techs aren't looking as cheap as they did back about a year ago when the nasdaq was at about 1950 so I'm kind of betting on a retraction in the sector - although NVDA should do pretty well regardless. If you really wanna trade GM and are feeling adventurous, I would sell Sept '06 and Jan '07 puts on that bad boy - maybe in the $10 or $12.50 range. Right now, puts are trading at a premium thanks to all the bankruptcy rumors surrounding the company. If you look at the Sept '06 puts, you're getting $115 per contract and have to put up about $400 in margin so you're looking at a possible 30% gain or so through Sept - as long as GM doesn't fall below $12.50 that is. Of course, you could lose $1135 if the company goes bankrupt, but that's what makes it fun... Anyway, I've been getting defensive recently. I bought a bunch of May '06 puts on the Russell 2000 ETF last week. I'm betting earnings season isn't going to be as much of a blowout as everyone hopes and the fed will likely hint towards rates higher than 5% in May (after a pause maybe) which all should knock down the index a bit.

i <3 options.

NVDA is really starting to take off now, they've started to establish themselves as a premier mobile graphics chip company which is going to be a cash cow. their price now is probably high but if it pulls back i'd load up on it.

why so pessimistic? they're really starting to turn the ship around, you can tell with the shake ups in management and the employee buyouts. the sale of GMAC gave them 14 billion more in cash on top of the already 34 billion they have. there is alot they can do with 50 billion dollars so they're certainly not as bad as everyone thinks.

i can understand your pessimism for the current times however, i think the market has had pretty good gains for the alst couple of months and you'll see some profit taking after the earnings season. but i think this year and next year are going to be great times over all to be in the market.

i agree with you on the rate hikes as well, i think we'll see 5.5ish range in q3.

i think the market has been beaten down enough though that once they pause its going to take off.

I'm not too pessimistic about GM. I mean if I really thought they were going bankrupt I wouldn't mention selling puts on it. I think there's very little chance the stock price is gonna drop below $15 so those $12.50 puts should be a safe - like I said, you're looking at a 30% gain in 5 months if you get those and the stock doesn't tank 30% by then. Even better, whatever you hold as margin, you can just throw in money markets and make another 2% over the time period. w0000t!

I'm really only near term pessimistic right now. I think the market should do fine as well once the fed stops raising rates.

Someone mentioned to me though that they may not stop raising rates for along time. His reasoning was that since other economies are raising rates, the US will have to keep raising rates so money keeps flowing in in order to sustain the current account deficit. I'm not too knowledgeable about major macroeconomic stuff like that so I'm going to do some research into the how the current account deficit effects fed rate decisions to see exactly what the effect could be.

how are your portfolios doing overall?

gains? losses?

you guys read my mind
this thread is just what I needed since I opened a scott trade account today

Re: Re: Stocks

quote:

Originally posted by SidMl GM's selling their foreign, profitable businesses to pay for losses in the US. Throwing good money after bad. IMHO they should stop focusing on size and market share and instead cut their lines and look after profits. Other than that, I don't really know anything about their operating financials.

Or they could stop making crappy cars. I was watching the news regarding GM and the quality of their cars. Mechanics overall stated that a GM car will break down more times in 5 years than a Toyota in 10 years. So far Toyota has taken the lead over American manufacturers when it comes to quality.

P.S. - Buy low, sell high.

quote:

Originally posted by Azz3D you guys read my mind this thread is just what I needed since I opened a scott trade account today

be careful man, don't do anything we say unless you fully understand the situation of the trade / investment.

do you have enough to trade options?

quote:

Originally posted by madhattared be careful man, don't do anything we say unless you fully understand the situation of the trade / investment. do you have enough to trade options?

don't worry, I won't buy anything anytime soon
I need read A LOT first before I make any moves
I don't want to rush into it

they have a $500 minimum deposit (which is what I have currently), I'm assuming that's not enough to trade options...

Re: Re: Re: Stocks

quote:

Originally posted by stevieboy32808 Or they could stop making crappy cars. I was watching the news regarding GM and the quality of their cars. Mechanics overall stated that a GM car will break down more times in 5 years than a Toyota in 10 years. So far Toyota has taken the lead over American manufacturers when it comes to quality. P.S. - Buy low, sell high.

American cars, and American manufactured goods in general, were never built for durability (at least in the last 30 years). Buy, use, replace. That's why they try to introduce new models every year, to keep people buying. The Ford Model T stayed the same for a decade* and the European car manufacturers still have long design cyles. GM just can't compete in open global markets. IMHO Ford still has a fighting chance.


* I just made that up, but it was a really long time.

Some more free advice for anyone who wants to take it.

A couple of months back I realized that I was making enough money but spending all of it. So now, from every paycheck I move a portion into my trading account. Each paycheck, I pick one new stock or add to an existing position and rarely sell anything. I don't mind if I these stocks go down, because I probably would have squandered the money anyways.

I spend the days leading to each paycheck thinking about what I'm going to invest it in. It's tons of fun. Since it's only bi-weekly, I don't make impulse buying decisions. And since I know I'm not going to sell anything near-term I don't spend too much time watching my portfolio.

I now have a decent amount in 10 stocks and it feels great. Time flies and before you know it, small amounts add up.

quote:

Originally posted by SidMl I now have a decent amount in 10 stocks and it feels great. Time flies and before you know it, small amounts add up.

you're better off putting that money in index funds. if you do this for 10 years, you'll be shocked at how fast it grows, basically every week buy an even amount of each. IJJ IJS

they're a better because a stock can go to zero, these won't ever.

If you're putting money away weekly, watch out for those brokerage fees. Putting it in ETF's like IJS and IJJ will cost you a lot if you do weekly transactions since they are subject to regular trading fees. If you do plan on making frequent, small contributions, you're best off putting it in a mutual fund that'll just track the indices. Mutual funds rarely charge anything upfront but instead have higher expense ratios than equivalent ETF's. This, however, isn't as costly as the brokerage fees when you're making lots of small transactions.

quote:

Originally posted by madhattared you're better off putting that money in index funds. if you do this for 10 years, you'll be shocked at how fast it grows, basically every week buy an even amount of each. IJJ IJS they're a better because a stock can go to zero, these won't ever.

agreed. a decently diversified portfolio is also unlikely to go to zero. also part of my incentive is getting to choose the investments. a single index tracker might get boring but I do have a some country and sector iShares.

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