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Umpqua Holdings Corporation Message Board

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  • pvbud pvbud Jan 29, 2008 1:25 PM Flag

    Buy outs, dividends, and value

    Hello Jon, that's one approach, but I tend to disagree. If you require the investment and gain from UMPQ to purchase another equity in which you are supremely confident of appreciation superior to UMPQ, or wish to purchase real property, then perhaps you are correct; it could be a time to take two dollar per share profits.

    On the other hand, investing has it's risks and I believe the risk of capital to gain only two or three dollars per share is too great to justify the original investment. Then, after you have paid the highest level of federal and perhaps state income taxes (because of your short term gain) where do you invest your remaining relatively minor profits that are superior to UMPQ?

    Imo, one's investment risk is worth, at minimum, two times the share value upon sale. Continually looking for another colt to mature into a horse is a fruitless endeavor in most markets. That is, unless, you have someone in the stable with prior knowledge, and that's not something normally found at the legal ticket window. Holding a valued, profitable equity over five or ten years is boring but usually the most profitable approach when compounded dividends are re-invested. But, hey, what do I know ?

    Thank you, Jon, for your UMPQ post. Good wishes for profitable investing .
    pvbud

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    • "
      "On the other hand, investing has it's risks and I believe the risk of capital to gain only two or three dollars per share is too great to justify the original investment. Then, after you have paid the highest level of federal and perhaps state income taxes (because of your short term gain) where do you invest your remaining relatively minor profits that are superior to UMPQ?"

      " Holding a valued, profitable equity over five or ten years is boring but usually the most profitable approach when compounded dividends are re-invested."

      You are correct. I am skittish. And I made my decision after studying the financial releases over the weekend.

    • well there is a bit of assumption in your theory that the equity u are holding won't take all your profit back...and offer u little or nothing in return...it is after all when u buy that makes an investment profitable or not...i would also question the reinvesting of the dividend back into a stock with umpqua's track record... lets face it they took back over 700 million dollars of peoples net worths recently...i wonder how much of yours they lost.... your 30 dollars a yr ago is only 16 today after all...lot of yrs of dividends with present value factors involved to get back to having 30 dollars again....much less what having the 30 dollars invested in a cd or something would be doing working for u....

      • 1 Reply to bumz4444
      • The market price of your personal home raises and falls from year to year; reasonable people expect it to do so. However, when the price weakens or declines one does not usually rush to sell his real estate.

        My point is simply: Common equity is expected to raise and fall, but the average investor will usually be more profitable during a five or ten year period than by trading frequently. Perhaps it's the difference between "investing" and gambling. But you are certainly correct that there is more than one way to dance to this music. Good wishes.
        pvbud

 
UMPQ
17.47+0.10(+0.60%)Aug 29 4:00 PMEDT

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