Results 1 to 8 of 8

Thread: Dia

  1. #1
    All Pro
    Join Date
    Feb 2008
    Location
    LEt it go, LET IT GO: The cold never bothered me anyway
    Posts
    9,355

    Dia

    Anybody ever taken a look at this stock? Its "on par" with the DOW JONES. $113. A share right now. (DOW = 11,300)

    Of course nothing is a gimmee, but If this baby drops to 100$/105$ a share, im thinking about making a serious investment. This would mean the DOW drops to 10,000/10,500.

    Ive only invested a few times in my life, and it faired HORRIBLE. Im a little anxious, but this seems like a pretty safe bet.....I mean I cant really see the DOW dropping under 10,000 for a substantial amount of time. ???

    Any advice/opinions?


    BET JET IN 08'!!!

  2. #2
    I think a bet against the index is better than an investment in the index, at least in the near term

  3. #3
    [QUOTE=sdJETSetter;2604701]Anybody ever taken a look at this stock? Its "on par" with the DOW JONES. $113. A share right now. (DOW = 11,300)

    Of course nothing is a gimmee, but If this baby drops to 100$/105$ a share, im thinking about making a serious investment. This would mean the DOW drops to 10,000/10,500.

    Ive only invested a few times in my life, and it faired HORRIBLE. Im a little anxious, but this seems like a pretty safe bet.....I mean I cant really see the DOW dropping under 10,000 for a substantial amount of time. ???

    Any advice/opinions?


    BET JET IN 08'!!![/QUOTE]

    The fact that it is priced "on par" with the index really does not mean anything and is not something you should be making any investment decisions based on. The price is just a function of the market cap divided by the number of outstanding shares. If it split tomorrow the price would be completely different but the market cap would be unchanged.

    I find the best way to find out if a stock is a bargain is to look at the P/E ratio and see if its lower than other stocks in the same industry. If it is lower, see if you can figure out why. (Sometimes the market discounts stocks for a reason: Idiot CEO, some fundamental flaw, etc... Sometimes stocks trade at a premium for a reason, too, and are still worth buying.)

    My question for you would be, if you're so sure it'll fall another $15 a share --which is more than 20%-- why are you eager to buy it? What is driving the stock down to that level that will magically abate when it reaches that point?

    It is very hard to outsmart the market, which is why I mostly buy mutual funds and index funds.

  4. #4
    All Pro
    Join Date
    Feb 2008
    Location
    LEt it go, LET IT GO: The cold never bothered me anyway
    Posts
    9,355
    [QUOTE=nuu faaola;2604808]The fact that it is priced "on par" with the index really does not mean anything and is not something you should be making any investment decisions based on. The price is just a function of the market cap divided by the number of outstanding shares. If it split tomorrow the price would be completely different but the market cap would be unchanged.

    I find the best way to find out if a stock is a bargain is to look at the P/E ratio and see if its lower than other stocks in the same industry. If it is lower, see if you can figure out why. (Sometimes the market discounts stocks for a reason: Idiot CEO, some fundamental flaw, etc... Sometimes stocks trade at a premium for a reason, too, and are still worth buying.)

    [B]My question for you would be, if you're so sure it'll fall another $15 a share --which is more than 20%-- why are you eager to buy it? What is driving the stock down to that level that will magically abate when it reaches that point?[/B]

    It is very hard to outsmart the market, which is why I mostly buy mutual funds and index funds.[/QUOTE]

    Great question. I understand your point. I guess my thinking is that it would take something dramatic to plunge the DOW below 10,000. Like "Depression" bad. I know there are alot of uncertainties with unemployment, and mortgage meltdowns still to come, but could any of these factors cause the DOW to drop below 10,000? I mean its 1 year high was over 14,000!

    Just trying to buy at a bargain, but I think you are correct when you ask "why is it so low" already.

    Any Mutual funds you Reccomend? My Credit Union is offering a 7 month certificate @ 3.40% Is that shabby?

  5. #5
    All League
    Join Date
    Apr 2003
    Location
    Missouri
    Posts
    4,146
    [QUOTE=sdJETSetter;2604837]Great question. I understand your point. I guess my thinking is that it would take something dramatic to plunge the DOW below 10,000. Like "Depression" bad. I know there are alot of uncertainties with unemployment, and mortgage meltdowns still to come, but could any of these factors cause the DOW to drop below 10,000? I mean its 1 year high was over 14,000!

    Just trying to buy at a bargain, but I think you are correct when you ask "why is it so low" already.

    [/QUOTE]

    You do realize that a drop from about 11,500 now to 10,000 is only about a 10% drop, right? That is not excessive in terms of historical sell-offs...even short term.

    14,000 was Oct 2007, which means it's already fallen about 15-20% over the past 9 months or so...

  6. #6
    [QUOTE=sdJETSetter;2604837]Great question. I understand your point. I guess my thinking is that it would take something dramatic to plunge the DOW below 10,000. Like "Depression" bad. I know there are alot of uncertainties with unemployment, and mortgage meltdowns still to come, but could any of these factors cause the DOW to drop below 10,000? I mean its 1 year high was over 14,000!

    Just trying to buy at a bargain, but I think you are correct when you ask "why is it so low" already.

    Any Mutual funds you Reccomend? My Credit Union is offering a 7 month certificate @ 3.40% Is that shabby?[/QUOTE]

    One stock I do like in the long term is Harris & Harris Group (TINY). It's a publicly traded private equity fund that invests in nanotechnology companies. Many of their portfolio companies are involved in green technology stuff like solar, biofuels, etc. This is obviously a sector that is going to explode, but I find it hard, as a layman, to figure out which comapnies are best to invest in. These guys are experts.

    The stock has been bouncing between $6 and $10 (closer to $6 right now) this year, and will stay in that range until some of its portfolio companies go public. When the IPOs start, the stock will soar. But given the current IPO market, that may take a few years. Still, I think its a good stock to get in cheap now and hold for the long term.

    As far as mutual funds go, I've lately become fond of funds that are dividend driven (equity and income, as their usually known). They tend to invest in mature, slower-growth companies that reliably kick off dividends. Sort of a nice strategy in a tough market. I think T Rowe Price has one of these that's pretty good.

  7. #7
    All Pro
    Join Date
    Feb 2008
    Location
    LEt it go, LET IT GO: The cold never bothered me anyway
    Posts
    9,355
    [QUOTE=Greenwave81;2604866]You do realize that a drop from about 11,500 now to 10,000 is only about a 10% drop, right? That is not excessive in terms of historical sell-offs...even short term.

    14,000 was Oct 2007, which means it's already fallen about 15-20% over the past 9 months or so...[/QUOTE]

    Yeah....thats kind of what im saying....its ALREADY 15-20% off its year high, so while it wouldnt be a reach for it to drop another 10% to 10,000, how much lower could it really go? I mean if it drops below 10,000, doesnt that mean our economy would be in dire straits? Like Depression times?

    As crappy as it is, I just couldnt see it happening. LoL...but hey....im a Construction worker....Im really just speculating ...thats why im here, to get some informative opinions on this.:yes:

  8. #8
    Jets Insider VIP
    Board Moderator

    Join Date
    Jun 2004
    Posts
    27,490
    [QUOTE=nuu faaola;2604808]It is very hard to outsmart the market, which is why I mostly buy mutual funds and index funds.[/QUOTE]

    You are a smart investor, completely agree

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Follow Us