Cheap Stocks?

[LDT]

If you had some extra cash laying around and wanted to take a chance on some cheap stock, what company would you invest in? I don't play the market that much but I do believe everything will rebound eventually. Never know, there may be another Microsoft or Google out there!

 

[ricoba]

While this market may be a value hunters dream....you better have a strong stomach and be able to accept further downward movement before the possible upswing.

It took four years of growth to reach the all time high of 14,100 on the Dow and less than a year to wipe those gains out.

Instead of playing one or two stocks, consider long term dollar cost averaging in a well diversified no-load mutual fund or an ETF.

 

[LDT]

While this market may be a value hunters dream....you better have a strong stomach and be able to accept further downward movement before the possible upswing.

It took four years of growth to reach the all time high of 14,100 on the Dow and less than a year to wipe those gains out.

I agree with what you said. I would not invest money I had earmarked for something else right now. Actually the money I am looking to invest is winnings from a recent trip to the casino. (And I usually don't win )

 

[pwrshift]

Food for thought for risk capital. Interesting yields on these ones: In USA markets: GE, BUD, TKS, Canadian markets: ALA.UN, TF.UN, BCE

 

[PigsDad]

Food for thought for risk capital. Interesting yields on these ones: In USA markets: GE, BUD, TKS, Canadian markets: ALA.UN, TF.UN, BCE

Even though it looks cheap, I'd think twice about GE. Over half of its earnings come from their financial services division, and they may have to do significant write downs with that. I could actually see a scenario that it completely brings down GE as we know it today -- after all, some huge financial companies have already been wiped out.

Kurt

 

[ricoba]

General Motors looks cheap, since as of today it's at its 1950 price.

But having said that, there's no way I personally would go and bet a bundle of cash on the future of GM.

 

[rschallig]

Instead of playing one or two stocks, consider long term dollar cost averaging in a well diversified no-load mutual fund or an ETF.

Consider restricting the dollar cost average approach to no-load mutual funds. Purchasing ETF's triggers a brokers transaction cost each time you trade. Not the case with no-load mutual funds.
Bob

 

[dukebigtom]

Since this is a timeshare board, if you have a strong stomach, you may want to look at Bluegreen - BXG. They historically trade at $6-7 and over the years have gone into the teens from time-to-time. There are negotiations going on with Diamond for Diamond to purchase Bluegreen. The original offer was $15/share although I doubt that is still on the table. Anyway, with it now trading below $4.00, it looks good to me. But, it does have risk. In addition to the Vacation Club, Bluegreen has a residential communities side and we all know how the residential market is looking.

In the end, some of the major questions you need to answer are: How much time do I have to wait for a return? How much risk am I willing to take. If you have time and a strong stomach, I think things will turn around, but all the experts are saying it won't be for a while. I figure this disaster has pushed retirement back at least 3-4 years for me if not more.

BigTom

 

[caribbeansun]

I shorted GM on Monday and I'm up 51% in 4 days and with todays headlines it looks like it'll be more of the same today.

Buying long into this market is a fools game IMO.

General Motors looks cheap, since as of today it's at its 1950 price.

But having said that, there's no way I personally would go and bet a bundle of cash on the future of GM.

 

[bogey21]

If you had some extra cash laying around and wanted to take a chance on some cheap stock, what company would you invest in?*

If "cheap" is the operative word and you don't mind potentially losing your entire investment, I would buy NCC (National City Corp).* It is a Bank which is in big trouble, but which also has a desirable branch network. It sells for about $2 per share. I think the likely range in 3 - 6 months is $0 - $6.

Full disclosure - I own some

George

 

[dioxide45]

If "cheap" is the operative word and you don't mind potentially losing your entire investment, I would buy NCC (National City Corp).* It is a Bank which is in big trouble, but which also has a desirable branch network. It sells for about $2 per share. I think the likely range in 3 - 6 months is $0 - $6.

Full disclosure - I own some

George

Don't expect NCC to fail. So I wouldn't expect it to go to $0. They have considerable cash on hand with the highest tier 1 capital ratio of all banks in the US.

 

[Bucky]

A lot of stocks are starting to look attractive. So attractive to me that I just opened a brokerage account with Vanguard. Previously I had all of my extra money in their mutuals but with stocks starting to look good I made this jump.

I agree that GE is starting to look attractive here. Evidently the market thought so today also. It was up over 13% today on 3 times it's normal volume.

Another one that is a little more risky that I am considering is Genworth Financial (GNW). The mortgage industry problems we have been experiencing have beat it down to a very attractive point. I fully believe either that someone like MGIC will come in and buy it or they will spin off their MI business soon and you'll see a big bounce in this stock. They said in a press release 9/30 that they are "looking at strategic alternatives for its U.S. mortgage business, including spinning it off as a stand-alone entity". JMHO.

 

[capjak]

BRKB around $3900 a share (hard to bet against the richest man in America..Buffett)

Citi group "C" pays dividend also

 

[Pit]

BRKB around $3900 a share (hard to bet against the richest man in America..Buffett)

I second BRKB (now at 3780). You get the benefits of an ETF (diversification) and the most successful value investor around as the fund manager. He is negotiating deals that no one else can. Why not go along for the ride.

 

[Keitht]

I'd currently only invest in a company that made tin boxes of a size that would fit under my bed. At least that way I'd have somewhere safe for my money - if I had any left that is.