Ned Davis on CNBC with Ron Insana is still looking for a final capitulation day of approx. 1000 points lower on the Dow.
Mr. Davis feels it might happen this month and followed by a recovery rally in Nov, 2002 thru Jan,2003.
I thought Mr.Davis made a good point, that is, investors should start dollar cost averaging into stocks now when a lot of good companies are selling at discount prices.
" with all due respect sir, LVLT is up $2.00 since then, and the jury is still out. if you held the stock from the high of $7 just 2 months ago, you have lost 42%. there is plenty of time for LVLT to sink or swim."
Motor mouth was busy making predictions today so i merely pulled up his last to see how much weight to apply to those today. The fact he was panning HARD one of the less than 1% of the stocks that has doubled since his bashing AT THE BOTTOM, makes me wonder if maybe he's Jim Cramer. LVLT was so "speculative" that Buffett paid 72% MORE than piggeo's pan price.
"nobody gives you hell for buying ACAS in the low 20's."
or buying the last time it was in the low $20s (posted here in 98) and selling it in the high $20s either.
"did you buy LVLT at the absolute bottom?"
course not, but i bought a lot close to it and didn't choose that exact day to come to this board and kick those in the teeth i knew were holding LVLT while they were down. what a prick.
" and that LVLT at that time was more speculative than buying other companies in the future."
and what made it less speculative 9 months later such that Buffett was silling to pay nearly 75% more for it? They wrote down over $3 bil in the interim between piggeo's bashing AT THE BOTTOM and Buffett's purchase. Is Buffett speculating these days?
....it's going to take a while, a couple more years to get to the bottom of DOW 2800-3200 and S&P 300-350....that's what the charts look like to me at any rate....so it's no rush as far as I'm concerned.....bargins are coming......the challenge will be defending cash until then, and that will be no easy trick given the storm clouds that are darkening over the financial system....check out the fine print on your broker's "safe" Treasury MM statement...check out your bank's strength rating...you may be surprised; I know I was...I wish everybody good luck because I think we're all going to need it before the messes of the 90s play themselves out....
the beat goes on....
"That's just one year. I thought you were a long term investor. Whats the 5 year or the 2 year look like?"
You popped off a year ago AT THE LOW. I don't remember seeing you trying to "save" investors 2 years ago when it might have done some good.
"Or more to the point, what was the price when you were pushing it here and what is your basis?"
$4.75 on the equity and well below current quote on the bonds (ignoring of course the fat coupons i've rec'd as well).
"Doesn't look very sweet now. Does it?"
Does to me. 9/15 coupon payments sure were fun (as will be 11/1 payments).
"And this is my final word on that scam."
Good idea. Quit while you're behind.