Buyers Market, Stocks on Sale
Independent Investment Research

by John Dalt

01/15/09

Today was a great buying opportunity. I bought a few stocks to average down some of the swing-trade positions. I had sold out of a reverse ETF on Monday night so was flying naked. It did not feel good yesterday as the market sank over 200 points on the DOW. I bought a reverse ETF this morning once the market was headed down. I was glad, as the market went down below 8000 on the DOW before reversing. This was a busy day; we were able to purchase the Gold Miners Index (GDX) that I had recommended Dec.19, 2008 in the long-term portfolio. It had gone up since that time and I did not want to chase it. Gold has softened since the first of the year, combined with the stock market going down to test lows, brought the price back to our predetermined purchase price.

I recommended a buy on GE for the long-term portfolio.  We were able to fill it at or below the suggested price today.  I encourage you to look at this company for your holdings.  I believe it will be a great long term holding.  It is selling for less than at any time in the last ten years, pays a great dividend and is situated to profit in different sectors as the economy recovers.  You can join our long-term portfolio service for only $49 per year.  I work to find a good company to recommend every two weeks building a portfolio to protect your family’s future.  I also monitor the prices and send an alert after market close if a stock has hit our trailing stop loss.  For less than a dollar a day, you can brag to your friends about making money in the stock market, without a lot of work!  I will do it for you, join NOW. 

The SP500 closed at 843, you should be filling your stockings with the great stocks you always wanted but did not want to pay the premium they commanded.  I saw a quote that if you loved a stock at $50, you should love it ten times as much at $10  I read an article about Warren Buffett, he sat on money the last few years and had over $30 billion in cash when the market started down.  He may have jumped too soon on some of his moves.  He readily admits he does not think the market will be better in five months, but expects to make a nice profit in five years.  That is why he is wealthy, and one of the world’s best investors.  I have been re-reading Ben Graham’s “Intelligent Investor”; Warren Buffett calls Graham his greatest influence.  I encourage you to get a copy and read it cover to cover, twice. 

Citi bank is grinding down to 0.00, Bank of America admits they need more money from the FED’s.  J.P. Morgan turned a small profit, but nobody believes them.  I am reminded of the story of the barber and the neighborhood kid.  The young boy enters the barber shop and the barber whispers to his customer, “This is the dumbest kid in the world.  Watch, I’ll prove it to you.”    The barber puts a dollar bill in one hand and two quarters in the other, then calls the boy over and asks, “Which do you want, son?”  The boy takes the quarters and leaves the dollar.  “What did I tell you?” bellows the barber, “That kid never learns!”    Later, when the customer leaves, he sees the boy coming out of the ice cream store, asking “Why did you take the quarters, instead of the dollar bill?” 

 “Because the day I take the dollar, the games over!”

The kid is smart, the banks are smart, Detroit is smart, Congress is dumb.  They ask for a little again and again.  The game never ends.

The perp walk in Washington continues as the cabinet seekers testify before the Senate.  Today was Mary Schapiro for the SEC and Eric Holder for Attorney General taking their turns.  Both seem capable, there is such a love fest in Washington, no Republican wants to criticize any of OH! BAMA’s nominees.  Holder approved the pardon for Marc Rich by Clinton in his waning days.  He even counseled him to go around the justice department to avoid the vetting the department would perform.  He was also involved in approving the pardons for terrorists that were in New York to help Hillary in her Senate election.  I heard a blurb last night that Hillary had interceded six times for donors to Bill’s Presidential Library, but no senator brought it up and all is forgiven.  As my dad says, “They’re all crooks”.  They seem to forget that almost 50% voted against him.  I was reminded by a radio DJ this morning at 5:30 a.m. how the mainstream press had attacked Bush in 2004 for spending $40 million on the inauguration.  Something like “How could he spend so much when people need help?”  OH! BAMA expects to spend upwards of $140 million.  But this is sooo important, historical even.  I guess it is a matter of perspective. 

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.   The editor may have held a position in a security earlier, or in the future.

HOME

Back to Top