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TranceAddict Investors Club @ Marketocracy (pg. 132)
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| Krypton |
| quote: | Originally posted by Shakka
Individual investors should not sell short. It is a great way to ruin yourself fast if you're not extremely careful and don't know what you're doing. If you want to bet against a stock rising, you should just buy puts--there is plenty of leverage built into them so you can get huge returns if you're right; and the worst you can lose is your initial investment. |
Options are a great idea. |
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| Krypton |
Here is a Citigroup (C) valuation. I'd sell if it went above $4.50 - 5.00.
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| Krypton |
I just bought 9 shares of United States Steel (X). Planning on buying more on down days over the next couple months. This stock is at the top of my entire watch list in terms of high quality fundamentals coupled with very good valuation discounted by the market. Here is a valuation I did on X...
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| Shakka |
| If you like steel, Nucor might be a better fundamental play. I know you use your algos and spreadsheets to filter for names. I'm just saying from the fundamental side NUE has a better cost structure as a minimill (though for some reason X always had appeal to me because they are vertically integrated). |
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| Krypton |
| quote: | Originally posted by Shakka
If you like steel, Nucor might be a better fundamental play. I know you use your algos and spreadsheets to filter for names. I'm just saying from the fundamental side NUE has a better cost structure as a minimill (though for some reason X always had appeal to me because they are vertically integrated). |
Nooooo, don't make me question my longs! ;-)
I'll take a look at NUE. But I'm pretty much committed already...In fact, I'm doing an industry analysis in a little bit, and NUE is included.
AKS
MT
NUE
PCP
RS
VMI
MATW
MLI
MINI |
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| mndeg |
| fundamental analysis is silly right now, market is easily manipulated. look at WFMI. it's being manipulated to continually squeeze shorts despite terrible fundamentals. also look at SHLD and AZO |
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| Krypton |
| quote: | Originally posted by mndeg
fundamental analysis is silly right now, market is easily manipulated. look at WFMI. it's being manipulated to continually squeeze shorts despite terrible fundamentals. also look at SHLD and AZO |
That's ridiculous. Why should technicals make fundamental analysis "silly"? |
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| Capitalizt |
| There are no reliable fundamentals now IMO. It is possible to outperform markets by finding companies with good fundamentals once the rules are set..but the government/fed are constantly changing the rules at the moment..moving the goal posts backward and forward..changing the definition of a foul..giving some players weapons and binding others in handcuffs.. Until the rules of the game are set in stone and the government stops propping up some companies while punishing others, markets will continue to be irrational and technical swing trades rule the day. Government manipulation/intervention needs to stop (or at least slow down) before we can focus properly on fundamentals. |
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| Joss Weatherby |
Interesting...
| quote: |
Washington Mutual sues FDIC for over $13 billion
Sat Mar 21, 2009 1:49pm EDT
NEW YORK (Reuters) - Washington Mutual Inc, the failed U.S. savings and loan, has sued the Federal Deposit Insurance Corp for well over $13 billion in connection with the loss of its banking operations, which was acquired by JPMorgan Chase & Co.
In a complaint filed with the U.S. District Court for the District of Columbia, the thrift's former parent accused the FDIC of having on January 23 made a "cryptic disallowance" of its claims, prompting the lawsuit.
It also accused the FDIC of agreeing to an unreasonably low price in arranging the a $1.9 billion sale of the banking business to JPMorgan on September 25, when regulators seized Washington Mutual and appointed the FDIC as receiver.
JPMorgan did not buy the parent holding company, which filed for Chapter 11 bankruptcy protection the following day.
In its complaint, Washington Mutual seeks to recover as much as $6.5 billion of capital contributions it said it made to its banking unit from December 2007 through the seizure.
Washington Mutual also seeks the return of $4 billion of trust preferred securities it said were wrongfully transferred to the banking unit, and said it may be entitled to as much as $3 billion of tax refunds. It also seeks damages of $177.1 million related to unpaid loans made to the banking unit.
The company also made claims on several other matters that together could add to any recovery. Washington Mutual is seeking a jury trial.
In the January 23 letter, the FDIC said it disallowed Washington Mutual's claims because they lacked documentation or specificity, failed to state grounds to recover, appeared to be made against third parties, or had no legal basis.
FDIC spokesman David Barr said the regulator does not comment on lawsuits.
Seattle-based Washington Mutual failed after mortgage losses soared, and following a 10-day bank run when customers withdrew $16.7 billion of deposits. It had about $307 billion of assets, and remains by far the largest U.S. lender to fail.
The parent is seeking to pay off creditors with amounts it recovers in the Chapter 11 proceedings.
The case is Washington Mutual Inc v. Federal Deposit Insurance Corp, U.S. District Court for the District of Columbia, No. 09-00533.
(Reporting by Jonathan Stempel, additional reporting by Karey Wutkowski in Washington, D.C., Editing by Eric Walsh)
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http://www.reuters.com/article/topN...eedName=topNews |
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| jerZ07002 |
| quote: | Originally posted by Capitalizt
There are no reliable fundamentals now IMO. It is possible to outperform markets by finding companies with good fundamentals once the rules are set..but the government/fed are constantly changing the rules at the moment..moving the goal posts backward and forward..changing the definition of a foul..giving some players weapons and binding others in handcuffs.. Until the rules of the game are set in stone and the government stops propping up some companies while punishing others, markets will continue to be irrational and technical swing trades rule the day. Government manipulation/intervention needs to stop (or at least slow down) before we can focus properly on fundamentals. |
I would agree. How do you value a company that has no positive cash flow and no net asset value? Nevertheless, these companies are being supported by the government and companies that should have no market value are being supported by the posibility of a government bailout. For example, AIG should have zero market value. When all is said and done, AIG's only real asset is its > $70 billion dollar net operating loss (which would be significantly reduced if AIG was purchased by another firm. All that other should be chum for the creditors. |
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| Krypton |
Sorry guys, but fundamentals are the foundation of my strategy, and they are more reliable than ever in this recession.
"In the short-run, the market is a voting machine but in the long run, the market is a weighing machine." - Ben Graham |
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