By now everyone has heard the time to buy is when there is blood in the streets. Great you say but almost no one ever does why is this? Because of days like today. It is very hard to buy in the face of a 250pt lost. Yet that is the best time to buy. It makes no sense yet it is proven true time after time. BAC buy of CFC has everyone scratching their heads. Why buy CFC now they agree. It is a bad call, too many bad debts etc etc. Yet BAC got alot of assets, a large continual stream of moneyflow, a easy way to freeze rate resets for a large percentage of mortage borrowers, etc. When MBIA did its capital sale today, those willing to risk it got a 14% income stream. Those types of deals will not be around when the sun comes out. What happend Wed if Citibank doesn't cut its div? and insteads defends it. A 7% safe div in C would cause the market to explode to the upside. Those are once in a lifetime deals. Yet there is great risk. Thus it is easy to say buy when there is blood but few ever do. In regards to this anyone thinking of buying some beatup companies and which ones? I nibbled a little on DRI and MSFT today.
Anyone else got any ideas. What about the dry bulk shippers?
it appears the worm maybe turning. 12,500 is a big level. I hope we stay around this level for the next couple of weeks to tell the truth, we need to put in a very big and stable base to get rid of this volitiity.
Hey, more clocks getting it right! ORCL & CSCO "both" got upgrades/Reiterations news today (Moody's/S&P). 2-4 isn't bad (no up/reiteration on glw or sndk today. However, some of it is a bit muted because S&P is one of my least liked analysis company. NUE got upgraded too. BA even got reiterations (although they got some neg mentions too so I guess that's a wash). intc got mixed news as well but I'm liking it and have a trade placed.
Here's some of what was said:
S&P MAINTAINS STRONG BUY RECOMMENDATION ON SHARES OF ORACLE CORP.ORCL; $21.31 Oracle agrees to acquire BEA Systems (BEAS) for $19.375 a share in a cash deal worth $7.2 billion, net of cash acquired, subject to conditions and approvals. Oracle expects the deal to add at least one to two cents to operating EPS in the first full year after closing. We think this is conservative given the many synergies between the two companies. The proposed price is above the $17 Oracle offered for BEA last year, and the total net transaction value of $7.2 billion is modestly above the previous deal's value of $6.67 billion. We will provide more details after today's 9 AM EST call. /Z. Bokhari
S&P UPGRADES OPINION ON SHARES OF CISCO SYSTEMS TO BUY FROM HOLD, ON VALUATIONCSCO; $25.00 We think Cicso's well-balanced portfolio of customers, technologies, and geographies, will allow it to weather any potential U.S. enterprise slowdown. We forecast continued solid growth in the service provider, commercial, and international markets, and remain confident in our fiscal 2008 (July) EPS estimate of $1.48. We view Cicso's financial profile as one of the best in the industry, with $25 billion in cash and cash flow generation averaging more than $600 million per month. Based largely on peer average P/E, we keep our 12-month target price at $33, attractive, we think, after recent decline. /A. Bensinger
The boost in our recommendation is based on valuation. Ahead of Q4 results scheduled for January 24, we project EPS of $1.15 vs. $1.35, reflecting lingering weakness in distributor demand. We continue to estimate EPS of $4.84 for '07 and $5.50 for '08, assuming a rebound in distributor demand, marketshare gains from imports and lower acquisition costs. Selling at 9.8X our '08 estimate following a sell-off, we think NUE shares are attractively valued. Our P/E-based target price remains $66.
S&P MAINTAINS BUY OPINION ON SHARES OF BOEING CO.BA; $78.88 Boeing delays the first flight of its 787 from the end of first quarter 2008 to the end of second quarter. This three-month postponement is on top of a previous six month delay. However, we continue to see the 787 as a potentially hugely successful program for the company, with over 800 orders booked to date, and we believe that Boeing has the experience to successfully navigate first flight and delivery obstacles. We are maintaining our 2007 EPS estimate of $5.11, but reducing our 2008 forecast by 10 cents to $5.66. We will update following Boeing's 11 AM EST conference call. /R. Tortoriello
Add JPM to the list (Citi and Forbes) getting their clocks fixed. It looks like they liked the post as well and decided to grab AMAT to put it on their "focus list". They probably would have commented on UA as well but they were late to the party. I wonder which one will get a positive comment next?... ;-) My guess is sndk, csco, glw or orcl.
been busy. FWLT pi**ed me off. today. The news from london suggested that infrastructure would be in play. Oh well other trade made up for it. It's been a good day. Holding overnight in some trades so not sure if it will end well or not.
I'm just playing it easy with Ag. I've had dba & moo since May and Sep respectfully (800 & 500 sh respectfully). I thought about adding recently but they didn't fall to where I wanted to buy more. Moo isn't as volatile as any of it's individual stocks but I don't mind slow, steady, and easy money.
Only a very small % of my overall portfolio is involved with quick (less than a few days) turn around trades because I tend more towards large dollar investments as opposed to lower dollar ones. I'm sure some people can make it up in volume of quick trades but it's a lot easier (for me) to primarily trend towards fewer, larger trades. Sounds like you had a good day. I did too irt my portfolio but I only made one trade today (buy side only). It's definitely fun listening to all the in and out trades though.