I'm starting to think that I might get back in. I sold at $31.50 with a profit. Now, unless the dividend is cut, the $1.04 a share at a price of $25 is a %4 return plus possible appreciation (12PEx$3.10=$37.20) Unless we are in a complete financial downturn for a long time, ie 3-5 yrs this could be a great play. What's wrong with my thinking?
I think this is a good time to buy stocks. It's still very risky, though, because new shoes keep dropping - the monster may have ten feet!
RRD stock shouldn't do that badly if there are further falls, unless this turns out to be a depression. At the moment it only looks like a recession with a financial panic due to a lack of liquidity caused by subprime mortgages that no one can sell.
The fact that RRD stock is owned by several large institutions is irrelevant to the value of RRD stock. If one of them goes bankrupt, RRD stock retains its value. Lehman Bros. owed RRD money that RRD will never see again, but that's probably the full extent of the damage to RRD.
If you think that we're near a market bottom, there are much better stocks to buy than RRD. RRD is a value company and will do below average during a stock market rally. If you have the nerve, some of the financial company stocks may take off like rockets. But buying RRD stock now would be OK too.