WAL - Street, Everyday low Prices!!

One of two things are going to happen. Me and huckfin are going to be laughing all the way to the bank because we are investing in the downturn while others on this board are investing in gun, ammos, mre, bottled water, etc. Or we will be wrong and still be able to buy all the above mentioned if need be. I think now is the time to stock up on stocks and save the doomsday scenarios for later, we are far from the scenarios predicted on this board from happening.

Though I'm known as a bit of a "doom and gloomer", I kinda agree with huck's premise. I'd not consider buying anyone of them at the moment an investment thought. More like buying a lottery ticket. You know it's probably gonna be worth zero but if it's not it'll put a smile on your face.

If i get the feeling that people are going to be allowed to fail or indicted I may dip back into long term investing. I'm more inclined to short-term trade anything right now. I'm not averse to outright shorting either, but it's got to have a ways to fall for me to be interested in that right now.

huck and tide, im with you. just got some oil and electric. summers coming and people will not stop driving, or turn th air conditioning down. never have and never will. lets make some money, guys and gals! or at least try and make it look like were enjoying ourselves

Originally posted by guinnessford
huck and tide, im with you. just got some oil and electric. summers coming and people will not stop driving, or turn th air conditioning down. never have and never will. lets make some money, guys and gals! or at least try and make it look like were enjoying ourselves

Oil stocks are a great buy and so is electric. You know damn well oil is going back to 100 in the next year or so. DYN is a cheap electric company I am thinking about buying.

If a stock drops 90% + from its highs such as most of the stocks you have listed have - that is a clear indication the market does not believe they will survive, and the market is almost always correct as it represents millions of people. If you look at examples of stocks that have done this in the past you will see a very, very small number ever recover.

Just to clarify anything that is nationalized will go to zero - that is why the prices are as low as they are, if you buy them you are actually betting they wont need to be.

Citi I am almost certain will go to 0 - it will be nationalized completely or allowed to fail, pretty much same thing with GM. B of A will probably need nationalization too - and if the economy worsens Ford is certainly not safe either. Basically there is good reasons all of those you listed are trading as if they are near worthless.

Basically the bottom line is you should never ever attempt to catch a falling spear which is essentially what you are advocating by buying the stocks you listed. You maybe get lucky with 1 of the ones you listed but the question is which one. It is a much better idea to buy something that is down heavily but is unlikely to fail - such as the providers of essentials (food, utilities, etc.) and I would only do that if you have money you are prepared to lose because ANY investment in the market now is a huge risk.

[edit on 5-3-2009 by proximo]

that may be true for most things in the market, but unless everyone parksn their car and never uses their electric again it doesnt apply here. unless theres a false flag coming up involving e.m.p. weapons? like all the put options on airplane stock the days before 9-11??!!

reply to post by proximo


I understand exactly what you are saying, but I am still willing to spend $1 on Citibank. You only die once and Citibank died a month ago. This is a different company.

With an operation so large the question should be asked...how would you nationalize a multinational?

reply to post by proximo


I actually believe that the reason most of those stocks are that low is because of all the short selling. Even healthy stocks are being shorted because of the panic. If it was any other time I would completely agree with you, however this is a once in a life occurance. Also there will not be total nationalization of banks. There is a massive sell off because of the amount of panic in the market. Nobody knows the true value of these stocks. Maybe they are worthless, maybe not. If not there is a huge upside and that is a chance I am willing to take. BTW it is the fear of nationalization. It aint gonna happen. You can take that to the bank. And if it does a lose a few thousand. I am a gambling man anyway.

[edit on 5-3-2009 by tide88]

With regard to the Nationalization of banks, does anyone know a place where I can look into what this actually means. What are the mechanics of this? I've read a lot of off the cuff responses, but I wasn't able to determine what are the real consequences of this event.

And why is the White House not giving a concrete response to this? Someone needs to say with 100% certainty that this will either happen or not happen. By letting Nationalization hang out there as a 50/50 chance that it could potentially be considered an option is contributing to the volatility in the stock markets.

Sometimes it's difficult to determine who's side these guys are on.

I'm not investing in any company I feel wouldn't survive a longer then expected recession. The government is keeping GM and Citi alive right now but if the downturn lasts years they won't be able to continue doing this. The only companies I have put cash into recently are BHP and XOM because they are well positioned to survive and have minimal debt exposure.

American Express just went under $10. I wonder what are the chances that all the companies in my list will go to $0 and cease to be publicly traded companies?

I suppose that because the economy has stalled out and new lending is dried up it makes sense that financials only decline. Even if they have no losses or toxic assets, the growth component of the stock pricing model is the major contributor to strong prices. As growth collapses toward zero (or less) all prices decline without regard to the quality of the company.

huck, ive looked into the nationalization of banks. couldnt find any articles to link to you. i asked a few people and what we all gathered is pretty simple, if you analyze the words. and add that to the bailout. its like the mafia handing a business owner 10k for help. then the enforcers come by once a week with their hand out to collect or get favors, or merchandise. sooo, the us gave all these banks a bailout, basically putting their "name " on the fine print of the bank. now, theyll be by oncwe a week with their hand out. or looking for favors, or merchandise. kinda makes sense to me if thats whats happening. the sad part is we all saw it coming and couldnt do a thing about it. let me know what you think. the guys i asked are sales managers and finance officers at the car dealership i work at, so they do have a little bit of insight on the money side of the world. i can fix your transmission, on the other hand.

reply to post by huckfinn


Well I hope someone listened to my STEM stock. The stem cell stock. I told you all it would rise when obama would overturn the federal funding for stem cell ban. Article just came out stating he is going to sign the bill on monday. Stock is up 44% already in after hours trading.

Originally posted by huckfinn
American Express just went under $10. I wonder what are the chances that all the companies in my list will go to $0 and cease to be publicly traded companies?

I suppose that because the economy has stalled out and new lending is dried up it makes sense that financials only decline. Even if they have no losses or toxic assets, the growth component of the stock pricing model is the major contributor to strong prices. As growth collapses toward zero (or less) all prices decline without regard to the quality of the company.

The reason the prices are so low is because of the mass panic. Amex will be fine. If you are in it for the long haul you will bank. GE is also in great shape. It is just people panicking. You will see some of these financial start to rise in the next two weeks. BAC will be an 8$ stock in two month.

Originally posted by tide88
reply to post by huckfinn

 

Well I hope someone listened to my STEM stock. The stem cell stock. I told you all it would rise when obama would overturn the federal funding for stem cell ban. Article just came out stating he is going to sign the bill on monday. Stock is up 44% already in after hours trading.

I put it on my watch list...I had a bad experience with a biotech 9 years ago, so I want see first what they are doing differently from everyone else.

Originally posted by huckfinn
Its turning out to be a yard sale down there. And since Washington doesn't have the guts to pull the plug on these companies its likely that they will survive.

When will you all understand. It is a plan to gain control over ALL aspects of your lives.

You will do as the government says or you wont get your monthly stipend etc.

It's an ingenious plan and has most thinking it will be a rescue, but in essence it is about the nwo and the control of the people.

How do I know this? It was written and predicted in the book of Revelations thousands of years ago. Welcome to the nwo.

reply to post by TH3ON3


I heard about that. While I do believe that a diabolical conspiracy existed, I have a very good reason to believe it isn't working out to well for them.

Last I checked Huck Finn is the man in this place, those other's just live here.

reply to post by huckfinn



Yeah I had a stock tgen (targeted genetics) about 5 years ago. Had alot of potential but ended up tanking. STEM is one of those stocks, it could tank but has a lot of upside. Starting clinical human trials if it works it goes up bigtime. Of course the other side of it is there is no proof stem cells even work. BTW I heard today that the people are going to be pleasantly surprised about the result of the banks stress tests. I am thinks BAC is about to see a 100% gain soon. I think March 17 is the date those test come back.


[edit on 6-3-2009 by tide88]

reply to post by huckfinn



There is will not be nationalization of the banks. Another stock I forgot to mention is UYG (pro ultra financials.) It is an etf. If you want to buy citi boa, jp morgan chase, wells fargo, goldman sachs, aig, amex, morgan stanley, us bancorp this is a good stock. I know there are so unstable stocks in there but if the financials turn around this could be another good one. Currently trading at 1.50. There is also URE which is the real estate fund. 5 years from now it could also be a winner. It is at $2. And if you dollar cost average these stocks and buy them weekly or bi-weekly you can build up a nice amount of shares without losing too much money.

Huck just read this article. mark to market rules change? You might want to go ahead and purchase those citi shares. I am going to buy some citi, boa, and uyg on my next cycle. UYG might be a huge winner if all the financial shoot up if they change the rules. I am betting they will, although I am a betting man.