My favorite growth stock, Cell Genesys, is down to about $11, and has a book value of about $10!(http://biz.yahoo.com/bizwk/020612/nf200206115102_2.html). There has to be a ton of steals out there (remember, buy low sell high). Time to gorge on Stocks?
well if you have cash then yeah, but if you were one of the unlucky people who's 401k's have been in the sh*tter then no. I would like to buy some stocks, but as soon as I buy them they will restate their financial records for the last 3 yrs.
Cohen, Unless you've done significant research into the valuation of their book value, I would be quite skeptical of using that as a point of value. Especially in industries such as biotechnology and software, much of the value they place on certain items can range from intellectual capital to patents to machinery that in the midst of a company failure would be useless in the event of a selloff of assets. MadMax: It really all depends on the Company, you can't generalize every company in the world. Baqui99: I would be weary of all three of those for the following reasons: KKD- to simplify the extremely high priced nature of this company, look at its revenue or number of store figures versus that of McDonalds, then compare the Market Capitalization. What you will see is that it is very pricey for a business in which sustainable growth rates are limited. I have a meeting...i will respond to BBY and CAL shortly
FD, The valuation is entirely based on fairly liquid assets: cash ($230M...pretty darn liquid) and Abgenix stock (which has depreciated since the $10 calculation, but so has CEGE). The patents were not considered at all.
Thats promising to hear those numbers then. As I stated, I hate making judgement calls unless I know the company well. But I do know certain industries have propensities towards certain accounting/financial practices that adversely affect true value. For Baqui: I would urge you to be wary of "yesterday's winners" As I feel retail companies could still be pricey relative to the overall market with their growth. Airlines have never been profitable and I really don't see any reason for that to change. Most airlines, including Continental, were barely treading water before September 11th and I know Continental recently lowered prices to shore up new business. Historically airlines have to worry about commodity fluctuations (fuel costs), unions, excessive repair and working costs, and the continuing shift towards deregulation that leaves much of the industry confused. The only positives I could see would be that federalizing Airline and Airport security could actually bring costs down for Airlines and the government may allow certain rights in regards to their unions to better the airline industry. Too many unknowns though, that I for one would not want to take.
Most of my money is sitting content at the moment in gold funds (which I may get out of as I'm taking a hit after getting good returns), REIT's, and bond funds. I did gamble on Worldcomm (WCOME) yesterday for the fun of it. I bought in at $.06, it went up to $.29, and I sold at $.19. I wish I had bought a lot more... lol. Ah well. It was fun...
maybe when i get a job i should invest in some stock? seriously. my parents never have... do i have to get one of those guys ummm stock guys?
Good thread Cohen! I was just about to come post a similar topic. I just started trading last week and am down about $80 because Dynegy plunged earlier this week, but I got out after regaining most of my loss and bought AMD at $7.99 which ended up at $8.4~ so I am happy even though AMD had some negative press the past few days. I was thinking of doing the same thing, but it was already up to $.18 and had some money tied up in other things that didn't pan out as planned. Sprint PCS and Juniper Networks helped me though. BTW, what do you guys recommend as some good investment reading? I'm really new to this game and don't want to screw up.
RocketsPimp and Others, For advice go to sites like the motleyfool.com. And Diseased Monkey please stay away from "stock guys" or as they are named stockbrokers, financial advisers etc, a majority of the time their interests are more in line with you buying and selling constantly to boost commission versus that of actually growing your money. Look to No-Load Mutual Funds that have a strong portfolio. I would be careful with WorldCom: 1.) Pre-earnings restatement they had a balance sheet debt the size of Minnesota. 2.) Governement is trying to make an example and it could get ugly.
Khan, just wondering, do you work in finance? I think that the airlines will rebound and their stocks will recover. The govt. is slowly bailing them out, and they will return to profitability within a year or so. I expect CAL to be trading in the mid 20's a year from now, so ~$13 a share right now isn't bad. BBY is at a low point. The retail industry will bounce back as soon as the economy recovers. BBY's Q2 report must've fallen short, since their stocks are plummeting. Also RocketsPimp, AMD was a good buy at $7.75 a share if you're in it for the long run. The US govt. is keeping AMD in business to keep Intel from monopolizing the microprocessor market. As a tech industry employee I can tell you that profits are thin now and don't expect any immediate returns on MOT, AMD, DELL, HPQ, etc. Some of these will bounce back and others will not. I'd still be weary of the telecomm stocks. Nortel is just about done. Cisco is making somewhat of a recovery after it was found to have millions of dollars worth of inventory. In the words of Michael, "Be Direct." :wink:
So you're saying it's time to short? Just kidding. I make it a point to never get back into a stock position I've sold out of for at least 30 days no matter what it's doing. As far as I'm concerned, I made a killing on this thing and what it does for the next 30-60 days means nothing to me. I'm happy to take my gains. But what F.D. Khan says is right. This stock is treading on thin ice. The only reason I bought into it was the rumored buyout by IDT. That $5 billion offer hit the news just in time for "the lemmings" to drive it up. And what a drive-up it was. But I think I'll just stick to the bond and REIT funds for a while now... I'm too scared to get back into this market via stock-trading. I only own one stock at the moment and it's Microsoft.
F.D. -- I understand all companies are different...but as a rule, right now, I'm not buying stocks...not until things sort out a bit. I don't think the dust has settled yet in the market as a whole. Accounting scandals aren't particularly to any industry. Did I read the other day that NASDAQ is now lower than it ever was post-Sept. 11th?
If you have the cash, now is the best time to invest. Everything is dirt cheap. Its like buying a porsche for 30,000.
had a friend who thought that when he bought Enron shares at $.80/share...it's now at $.11/share. just because stocks are cheap, doesn't mean they're not gonna get cheaper!! depends on your investment strategies, i suppose.
I'm with MadMax on this one. I'm too scared to buy too many stocks simply because this market seems to be run too much on emotion and people sell off at the stupidest turn of events. Every now and then I buy a stock simply because it's been battered for no reason. rezdawg, I'm sure about a month ago people were saying "this is a great time to buy", but there really is no perfect time to buy for everyone. It's all a matter of risk analysis and what the individual is willing to accept for returns, what the individual thinks of the market, and what the individual thinks of the risks involved. There are still some people out there wanting returns of 40% and 50% monthly like during the telecom and dot com boom. Good luck... I'll be perfectly happy with my 8% returns if I can get 'em. Did anybody invest in iShares? I've bought EWY and EWJ in the past, and they both did very well, but I got in on the tail end, so didn't really reap all the rewards so many korean and asian funds have produced in the past year or so. Same thing with gold funds. Whatever you guys do, do the most important thing : diversify... especially in this market.
