What's everybody think about Disney(DIS)? It's at 10 P/E right now. Wouldn't this be a great bargain?
Hello, Im a grad student here in houston and im entertaining the thought of getting into the market. I have about $3,000-5,000 that im looking to invest for the long-term. i keep hearing that i wont find a better time to get in, but i would also like some guidance regarding what i should purchase. which sectors should i be looking at? ive been told that companies such as exxon and jp morgan are solid buys, but those stocks are still priced at more than i want to pay. what is this PMTI that yall keep mentioning? are there any other stocks that you guys feel are solid buys? also, which sites do yall use to trade? thanks!
I'd advise you to do your own research first and learn how to invest. Getting stock tips from forums etc. when you're a newbie is a good way to lose a lot of money quickly. PMTI is a medical stock I have analyzed for a while and I have my personal strategies for trading it. I can't tell you right now if it's a good long term play or not. If you want to go long term, find out which companies have the best fundamentals and upside growth potential and invest in those. There is no substitute for doing your homework. Trust me.
oh i definitely agree and im not a complete novice when it comes to investing. a couple years back i made some decent money with dynegy and mastercard, cashed in and pulled out. ive spoken to a number of friends about the market and the promising oppurtunity it potentially represents these days. i just thought id get a feel for what you guys thought. thanks for the advice though. i really appreciate it.
You know when folks say a market crash is a once in a lifetime thing. Well this is a once in a lifetime thing.
Hey guys. I'm a undergrad student at UHD and the company that i work for gives us stock options whenever we get a degree. Well, I got my associtates last December and the company awarded $5,000 (of course after taxes, it ended up to be around 3,800). I know thing are shaky right now and pretty unstable, and I've seen the drop of the price of this particular company (UTX), so I was wondering if it'd be wise for me to sell now, and explore other options or, hold on and hope things turn up. I'm in it for the long run and not for a quick profit, so that's also a factor. Please be advised that i also have a family (wife and kid) so I really can't afford to take chances right now. Anyways, i'm fairly new to this board and i appreciate all the help.
If you don't need this money now, and you feel that company will survive in 10 years, why not just keep it?
That's what i was thinking, i just dont know if there's better oppurtunities out there. Specially now...
I wish gold would bottom out and I could buy my 2008 version of this I have 1999 through 2007. Have yet to buy a 2008 cause gold is so freaking high.
not sure if you will check this thread again but you might want to re-think your stance on this issue. http://www.bloomberg.com/apps/news?pid=20601109&sid=anUDEEEP1_M0&refer=home Cost of U.S. Crisis Action Grows, Along With Debt (Update1) By Matthew Benjamin Oct. 10 (Bloomberg) -- The global financial crisis is turning into a bigger drain on the U.S. federal budget than experts estimated two weeks ago, ballooning the deficit toward $2 trillion. Bailouts of American International Group, Fannie Mae and Freddie Mac likely will be more expensive than expected. States are turning to Washington for fiscal help. The Federal Reserve said this week it will begin buying commercial paper, the short- term loans companies used to conduct day-to-day business, further increasing costs. And analysts now say the $700 billion bank- rescue plan passed by Congress last week may have to be significantly larger. ``I always assumed they would be asking for more money along the way if it was necessary, and it looks like it's going to be necessary,'' said Stan Collender, a former analyst for the House and Senate budget committees, now at Qorvis Communications in Washington. ``At the moment, there's nothing happening here that's positive for the budget. Nothing.'' The 2009 budget deficit could be close to $2 trillion, or 12.5 percent of gross domestic product, more than twice the record of 6 percent set in 1983, according to David Greenlaw, Morgan Stanley's chief economist. Two weeks ago, budget analysts said the measures might push deficit to as much as $1.5 trillion. Yields to Rise That means a lot more borrowing by Treasury, which will push up interest rates, said Greenlaw. ``The Treasury's going to be ramping up supply dramatically over the course of coming months to meet this enormous federal budget obligation,'' Greenlaw told Bloomberg this week. ``The supply will trigger some elevation in yields.'' Treasuries have fallen the past four days even as stocks sank, a sign investors are preparing for bigger U.S. government borrowing. Benchmark 10-year note yields rose to 3.82 percent at 7:49 a.m. in New York, from a close of 3.45 percent Oct. 6. Payments the government allocated to keep vital companies solvent are beginning to look insufficient. AIG, the giant insurance company that was taken over by the government in mid-September, said this week it may access $37.8 billion from the Federal Reserve Bank of New York, in addition to the $85 billion the government already loaned it to stave off bankruptcy. ``You're in for a dime, you're in for a dollar on this one,'' said David Havens, a credit analyst at UBS AG. The financial health and earnings prospects of Fannie Mae and Freddie Mac -- seized by the government on Sept. 7 to prevent them from failing -- worsened in the second and third quarters, the companies' government regulator said this week. Price Declines The companies and regulators are recalculating the value of all of their assets to factor in price erosion. That may mean the government will have to spend more to keep the firms solvent. Earlier this week the Fed announced it will create a special fund to buy commercial paper, the credit that businesses use to finance payrolls and other ongoing expenses. The Treasury will deposit money into the Fed's New York district bank to help set up the new unit. A Fed official said Treasury funding for the program could be ``substantial.'' California, Alabama and Massachusetts are urging the Fed and Treasury to include their securities in rescue plans designed for banks and businesses. The $2.66 trillion U.S. market for state and city bonds has been all but frozen since Lehman Brothers Holdings Inc., weighed down by losses in mortgage-backed bonds, declared history's largest bankruptcy on Sept. 15. California has said it needs to sell as much as $7 billion in notes to maintain its schools, health system and other public services. The Bush administration said it is reviewing the states' financial positions. Plan for Banks Meanwhile, Treasury Secretary Henry Paulson indicated two days ago that he is considering buying stakes in a wide range of banks in coming weeks to help recapitalize them. Such a move is allowed under the $700 billion bailout package Congress passed last week. Edmund Phelps, winner of the 2006 Nobel Prize for economics and a professor at Columbia University, said such action is necessary -- and will likely turn out to increase the measure's cost. Spending beyond the amount set in last week's bill would require further Congressional approval. ``We have to recapitalize the banks,'' Phelps told Bloomberg Television this week. ``I don't imagine that there's enough money in the first Paulson plan to be able to do all that needs to be done in that direction.'' The additional borrowing could push the national debt well past 70 percent of GDP, the highest since the immediate aftermath of World War II, when the U.S. was still paying off war debt. Debt Limit Gross U.S. debt, which includes debt held by the public and by government agencies, this year reached about $9.6 trillion, or about 68 percent of gross domestic product. The rescue legislation increased the government's debt limit to more than $11.3 trillion from $10.6 trillion. On top of all that, budget watchdogs say the sheer size of the interventions is making Washington more profligate than usual. To attract votes in Congress, leaders added several costly items to the $700 billion rescue, including extensions of some tax credits and tax breaks for makers of wooden arrows and stock- car racetrack owners. Under normal circumstances, there would have been more resistance to such expenses, said Robert Bixby, executive director of the Concord Coalition, a non-partisan budget watchdog. The rescue legislation ``creates a mask for all sorts of fiscal irresponsibility,'' said Bixby. ``It covers up a multitude of sins.'' To contact the reporters on this story: Matthew Benjamin at mbenjamin2@bloomberg.net Last Updated: October 10, 2008 07:55 EDT
I bought UTX around 2 years ago at 62.5, so I feel your pain. However I still like the company and think long term its a solid play.
Robbie, I agree that AAA isn't a god given right for the US, but I don't think we'll see AAA dropping just yet. Should the deficit number be taken in context that we've made loans, hence have financial assets against this borrowing (value questions aside). This is very different than say spending billions on war or some large tax rebate.
the deficit should be looked at as the article is looking at it. who knows how long it could be before these become performing assets? it doesn't look like they could anytime soon. so basically we are asking countries and citizens to loan us even more money to buy things that are likely to have negative yield. i am not saying that we can simply sit back and do nothing but i am saying that something is going to break with the solution we are trying to implement. the numbers have shown over and over again that our wreckless spending and borrowing will come back to haunt us in the future. if we had been running budget surpluses for the past decade then we might be able to take care of this credit crunch....but we haven't. so our lack of foresight is coming back to bite us in the ass much sooner than we had planned for. also, what loans are you talking about? the only major one i can think of is the AIG loan that started at 80 billion and is now at 120 billion. then obviously the take over of FNM and FRE which is looking worse than expected. i do understand that a good amount of the national debt that we took on from the FNM and FRE takeover is "good debt" but with the likely continued fall in housing prices (some estimate that home prices could continue to fall another 25% ON AVERAGE nationwide) you have to wonder how much we will mount in losses before profits start to come. so basically we are playing a game of chicken...and i don't like our chances with our current or potential future leadership from either side of the aisle.
Yeah, well, its a very diverse company. UTC owns companies ranging from AC manufactors, fire and security, helicopter manufacturers, space suits manufacturers, rocket manufacturers.etc.. I remember sometime last yeat UTC stock was selling at 90+, so seeing drop to lower 50's is pretty amazing. I think I'm gonna hold on the little that i have. UTC will award me another 10,000 in stock whenever I get my bachelors, so its all good. Thanks guys.
fwiw utx does look relatively solid to own. it could slide since earnings and growth will likely be hit due to the slow down world wide. if earnings are flat at $4/share then shares could maintain this 40 level and that would put them around 2x book value. the other good thing about them is they don't have a lot of debt and they payout a decent div.
The IMF or World Bank told us a year ago that this course of printing easy money to cover our account deficit and maintaining insanely low interest rates was unsustainable. I'm not really sure when foreign banks will wisen up or find away to get out relatively unscathed, but that will be a painful reckoning that could lead to Argentina proportions. What's funny is blowhards like Bill O'Reilly calling the pullout by foreign banks financial terrorism, when it's us holding their assets hostage by cheapening the dollar even further. It gives rednecks another thing to swear at. Not like they don't swear at anything with the "foreign" label.
