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Why do you project they can only go up from their lows? There are many stocks with massive dividend yields because they have been free falling and eventually file for bankruptcy. I don't know the stocks you mentioned, I'm just asking why do you think they can only go up?
I don't think it's guaranteed but looking at a good balance sheet with average or better revenue, is it a good idea? Of course I've researched the stock and looked at the financials which is important. The 2 stocks I chose have Morningstar rating of 4 and 5 stars. I' m just wondering if anyone had any advice and experience doing it.
Sure there is a lot that can go wrong, any company as a rule that's yielding dividends that are astronomical is speculative. Speculative stock oftentimes go up and down alot. Be glad you captured the upswing. Many people hold these stocks to get one quarter's dividend yield, and then sell. I'm not sure about israeli telecoms, but the one's you selected appear to have very low investor confidence. This could be due to accounting, corporate governance, political, regulatory, or any host of issues. It's best to find out, because the market usually isn't very far off of fair value.
buying near 52 week lows while markets are heading for new highs at the same time is a red flag.
anything performing poorly And not moving with the tide has to be looked at very carefully.
i believe cel lost 77% of its value so the 28% dividend may actually still leave you at a loss.
the stock is down 77% and the dividend hasnt been adjusted so its a great payout on horrid performance.
they have a huge debt load too . they pay out 75% of their income to maintain that dividend while keeping their high debt load and now have competition from competitors who are dumping a ton of money into newer technology.
my vote is its no bargain. its lost 77% of its value for a reason.
same story with ptnr, its been a falling knife . another high dividend and a share price that will send you to the poor house.
quite frankley i prefer to buy into strength not speculating on companies that fell like rocks and give me a dividend with one hand and take far more back with the other.
i believe cel lost 77% of its value so the 28% dividend may actually still leave you at a loss.
the stock is down 77% and the dividend hasnt been adjusted so its a great payout on horrid performance.
they have a huge debt load too . they pay out 75% of their income to maintain that dividend while keeping their high debt load and now have competition from competitors who are dumping a ton of money into newer technology.
my vote is its no bargain. its lost 77% of its value for a reason.
same story with ptnr, its been a falling knife . another high dividend and a share price that will send you to the poor house.
quite frankley i prefer to buy into strength not speculating on companies that fell like rocks and give me a dividend with one hand and take far more back with the other.
Thank you for the advice. I'm not at a loss because I bought the CEL down at the 77% loss. Fidelity has analyst reports at a neutral for the stock, nor bullish or bear. Morningstar rates this stock at 5 stars according to their research even though MS is only a guide to as stock. The financials look ok with the income revenue steady since 2007. Gross profit has also been steady as well.
As for PTNR, I also bought at the lows so I haven't lost the stock at the up. Buy low, sell high. The same thing with this stock steady revenue and profit according to the MS income statement. MS has also given this stock 5 stars. Most analyst at Ford equity give it a buy while Zack's Research Investments give it a neutral according to Fidelity. The Equity Summary is very bullish on this stock.
With all those facts, my research was correct with IVR as analyst were very bullish on IVR which is rare. Most rated IVR as a buy and it has been a excellent investment as a REIT.
I do understand there are risks as with any investment. I've done some research and I understand that I should watch it closely. I haven't put too much money in the stocks even though they are at a low price, that's the reason I bought after the huge losses. I understand the huge loss we experienced with RIMM and EK, so I'm very careful. I do plan to do dollar cost averaging. I'm up 6% in 3 days with CEL and PTNR buying at the bottom. I also bought IVR at the bottom and it has gained which I'm up 12% since April.
I dont invest in things I dont know industry wise or at least am exposed to professionally. Minimizes risk. Chasing dividends etc is ok if you have really had a grip on what what is impacting that industry or at least anticipating what will happen because we all know its not always the companies technicals that dictate its success....especially in industries where there is a lot of change.
Sorry to hear about your RIMM stocks SingleLady, tech stocks are too flighty for most investors except for a handful. They were toast 2 years after the iPhone came out and early adopters shifted to the masses.
Based on the actual OP though, I dont see harm with your idea. Just do your homework and tread lightly.
Buying stocks at lows is a losers game. Selling begets more selling when it comes to institutional money and those are the most inclined to buy for yield. Wait for a bit of a bounce upward before you can feel confident a stock wont just keep hitting or hanging around its lows.
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