Credit Suisse downgrades stock to a hold, but instead of holding, skillions of people SELL! This is very weird to me the ignorant stock newbie. Stockholders respond to the rater's advice as if it is really important, but they don't do what the rater suggests. Weird.
And if the price drops precipitously and becomes an apparent bargain, shouldn't the downgrader become an upgrader the very next day!? With the price drop I just bought some of this stuff, so I could have some to "hold." What am I missing, all u stock market smart guys?
Buy on dips. I added to my position on a downgrade two months ago.....at $11.55. I'm up over a dollar on that....plus I get the 8% div. If a stock/company is good....buy on dips. I've always used downgrades to buy good stocks. Of course, stay away from the losers. This NYB is a good company.
There is so much #$%$ in the market. Most holders of the stock don't sell it. What happens is the short sellers come in and dump un-owned shares hoping to cause a selloff of holders. If this doesn't happen, then the stock rebounds as the shorts cover their positions. Most day to day stock moves are caused by the traders. I always get a kick out of how the news reports the stock market. "today stocks were down because investors were disappointed the fed did not reduce rates etc." "Today the market was up as investors grew optimistic Europe will solve the debt issue." I'm and investor and nobody ever polled me as to why I did anything. So as I said it a bunch of #$%$ listen ti it but don't take it too seriously. If NYB can keep paying the divi, it will get back up in share price. If they cut, watch out below. I don't think they'll cut.
could not have said it better. I'm in this stock for the div. It is paying 6x that of a 10 year note. The stock hs a low beta and is expanding. The div is the answer and if the div falls, your right, whtch out below. Puts are cheap but does cut into the profit. You make the call; that's why it's called investing.
I'll try to explain. I have been in the market most of my life, and I am about the same age as you. I learned a long time ago that when an analyst says he's downgrading from buy to hold most stock buyers out there take the "hold" to be a "preamble" to a "sell" opinion. So, they don't literally follow the advice and hold, but skip to the "assumed" next step "sell". Also, I have found that once an analyst says hold or sell he rarely comes back with a "buy" even if the stock comes down and becomes a supposed bargain price again. Hope this is a satisfactory explanation.