Time to buy stocks? (mortgage rates, lawsuit, wage, payment)

[Texas User]

Originally Posted by Carla Hailey

Risk takers would buy stocks aggressively when everyone's afraid because during this not so good economic condition they can buy low and sell high.

Like me. You just have to be patient for the returns.

[Texas User]

Originally Posted by treasurekidd

There's a reason for that.

$98 was Feb of 2007 though. Once the debt crisis is resolved, banks will rise.

[Texas User]

Originally Posted by Antlered Chamataka

Howard, thank you. I'll have to plan this tomorrow. I'll check this one out. I'm desperate to make some money here and there.

I thought you were a fat cat like that CEO's of big corps.

[darrell2525]

Originally Posted by Texas User

I like IRE. It was almost $98 at one point but not its below $2.

I would not buy IRE when there are so many small cap companies out there with cash in hand: Here are some very very cheap companies. I am cheap, I want to buy with a safety of margin.

HUN
BZ
MGM
WFR
BAC
FCX (made 4 billion in cash in 3 months)

As far as IRE goes, yes you can buy now with hopes of one day getting back to 80, but I doubt its any time soon. Very risky. But take 1000 bucks and what do you have to lose, 1000 bucks, you can make that back in the next 30 years selling socks on the corner.

[modeerf]

Originally Posted by Texas User

$98 was Feb of 2007 though. Once the debt crisis is resolved, banks will rise.

So 2020?

[Currency Pair Crocodile]

Originally Posted by Texas User

I thought you were a fat cat like that CEO's of big corps.

I wish. The closest I am to that is sitting in the same room as them and sometimes presenting a bubble chart.

I stated before I am trying to somehow offset my Japan losses and come clean for 2012.

Uranium will eventually go up, but seeing that part of my portfolio every day feels like a spoke was stuck at the valve of my urinary bladder and I can't pee

[KayAnn246]

Originally Posted by Texas User

$98 was Feb of 2007 though. Once the debt crisis is resolved, banks will rise.

But CNBC always makes the case that banks have plenty of cash. They are hoarding the money. They are scared to lend especially BAC. I understand that they have plenty of pending lawsuits but that has nothing to do with the economy. It has to do with the greedy execs in their mortgage (Countrywide and BAC) and investment divisions. So I think even when the economy improves, BAC and C will still have a long way to recover after they are buried under these lawsuits.

I also believe that the government and other companies BAC sold those bad mortgage will uncover more mess as people's ARM rates adjust, more lose jobs and more benefits like social security, medical benefits and pensions are reduced or taxed heavily to make up the government's deficits. These issues will bring the housing market down even further which will hurt big banks.

[modeerf]

Originally Posted by Antlered Chamataka

I wish. The closest I am to that is sitting in the same room as them and sometimes presenting a bubble chart.

I stated before I am trying to somehow offset my Japan losses and come clean for 2012.

Uranium will eventually go up, but seeing that part of my portfolio every day feels like a spoke was stuck at the valve of my urinary bladder and I can't pee

You may want to look into pumpkin seed oil for that pee issue, it's usually an enlarged prostate that acts like a stuck valve.

[howard555]

Originally Posted by Antlered Chamataka

I wish. The closest I am to that is sitting in the same room as them and sometimes presenting a bubble chart.

I stated before I am trying to somehow offset my Japan losses and come clean for 2012.

Uranium will eventually go up, but seeing that part of my portfolio every day feels like a spoke was stuck at the valve of my urinary bladder and I can't pee

Here is another one for you. It took me about 30 minutes to get filled on both legs.
NDN, 99 cents stores, received a buyout offer of $19.09 back in May or so.
The stock drifted lower to about $16.00. Then yesterday a Bloomberg story that Apollo Group was preparing to make a bid. NDN told the former bidder, Leonard Green, to have his bid ready by middle September.
So, September options expire September 16th. I am hoping that middle of September means that any takeover would be after the 16th, and above $20.10.

He is my structure. A October 20 - September 20 call spread.
I bought 10 October $20 calls for 80 cents or $800.
I sold 10 of the September $20 calls for 70 cents or $700 = net debit of $100.
The $19.09 bid was not accepted as being too low.
One analyst thinks the company can be sold for around $22.00.

So, what are my risk:
1. The former bidder and new bidders get their bids in before September 16th and the company accepts the highest bid before 5pm on the 16th.
I lose my $100.

So, what are my possible gains:
1. Bids come rolling in middle of September, the board of directors take a few days or a week or two to make a decision. Remember that insiders own over 40% so they have a reason to sell out. This would put the auction process past September 16th. The September $20 calls I sold would expire worthless.
2. Now my October $20 calls are the profit machine. I have $100 invested in them. Any takeover over $20.10 would give me profits of $100 per 10 cents rise in price.
Ex: A $21 takeover makes my October calls worth $1000 on an investment of $100. Takeover over $21 is more icing on the cake.

This company only has a market cap of 1.27B. The stock is now $18.00.
So, with a mere 20% premium to today's price, you get a takeover price of $21.60 (or $1600 for me, from my $100). The 52 week high is $20.75, so a takeover higher than $20.75 would not be out of line.

All news stories are on Yahoo Finance. This company received a low ball offer from one if it's biggest shareholders. The company did not take it and saw their stock fall to $16.25 and should now realize they need to sell. I'm risking $100 that they do.

Revised: a deal after October 21st would also cause a total loss. I could have bought the Dec. $20 but they would have cost me about $1.05 or $1050 making my risk $350. I chose October because I believe Apollo has already done their due diligence, as they call it, and I know L. Green has too, from his original bid.So, once bids are in the board of directors should be able to say yes or no by October 21.

Quoting one of my favorite business TV anchors, Paul Kangas.....
over and out, and "wishing you the best of good-buys (good-byes)"

[Des-Lab]

Is it a good time to buy?

Well that all depends on what time period you are comparing it to. If you are looking back at '09 or '10 indexes, odds are you've been creamed this year. But conversely, if you are looking ahead not in terms of days, weeks, or even quarters, but in years, today is always the best time to buy because simply put, the markets will always go up in the long run. yeah, we'll see periodic up-down swings like we've seen in the last 30 days, but ultimately it isn't going anywhere but UP.

Oil might seem like a bad choice at ≈$80 today if you missed out when it was $50. But will be a steal when it gets back to anywhere north of $150. Gold, same thing. $1800 seems steep today. But in a few years, when it reaches $10,000, suddenly you'll wish you got in now. Like I said. Don't chase pennies by panicking the day to day swings.

The DJIA "appears" to be struggling to get back to 11k and points north. I am confident it will end 2011 at 13k or higher and the decade at 20k or higher.