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Botany Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 08:26 AM
Original message
Of the stocks that are way down in value which ones have a chance to .....
.... be around for the long run and gain in value?

G.E. ?

G.M. ?

A.I.G. ? :rofl:

I think some real money could be made in the long run just like some did in the
great depression when stock was selling @ pennies on the dollar.
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Lyric Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 08:28 AM
Response to Original message
1. I'd bet that GE is going to come back up eventually.
AIG is a definite no-no. I have no idea about GM.
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Botany Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 08:32 AM
Response to Reply #1
3. G.E. @ $7.00 looks like a good buy
G.M. might be broken up so any stock in it might be worthless
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Lyric Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 08:38 AM
Response to Reply #3
5. One very, VERY small bright side to this tragic situation:
with stocks plummeting down to low levels, a lot of people who couldn't afford to invest before might be tempted to do so now. Actually, I think the administration should consider doing something like that--setting up a program to help first-time investors give it a try.
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WePurrsevere Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 09:09 AM
Response to Reply #5
6. We've never had funds...
to invest but with low $$ stock investment places online and some stocks getting low enough, I must admit it's becoming more tempting to try.

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On the Road Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 09:37 AM
Response to Reply #3
9. The Bad News About GE
is that 82% of their financing is through debt. The good news is that they are still profitable and have an interest coverage of 18 (coverage of 1.0 means they make just enough to pay off their debts). And they have a dividend of $1.24.

It's hard to value a conglomerate. For example, GE's defense businesses might be taking a hit with the Iraq war winding down (thankfully). The part that worries me is GECC, the credit subsidiary, which was successful for many years but now shares some of the same troubles as other financial companies.

Here's an article saying that GE might collapse entirely. But some of the current companies are going to survive and those that do will rebound strongly. At some point.

One way to hone in on the best values might be to look for large historically successful companies in out-of-favor industries with little debt and good ratings. Technology hasn't been in the news for awhile and might qualify.

Here's a list of stocks in the tech sector with no debt, positive Price Earnings under 20, and with a market cap of at least $1B:

AAPL, ADI, AVX, CPWR, CTSH, FDS, GPRO, GRMN, IDC, INFY, JNPR, LOGI, NATI, NTES, PLCM, QLGC, QSFT, SOHU, TXN, TDC

Just a suggestion -- requires more research. I've been sitting on the sidelines and haven't looked at individual stocks closely in awhile. There may be a bear market rally this year, one that's sizable enough to take advantage of, but it has to be watched carefully.
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blue cat Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 08:30 AM
Response to Original message
2. An ex invested in GM and AIG
and he is 30 thousand in debt and about to be laid off. I don't know what to think because I have no money to lose right now.
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maseman Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 08:37 AM
Response to Original message
4. Usually the best stock classes after a recession
are:

1. Emerging markets (not the US of course)
2. Small-cap stocks.
3. the S&P
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SheilaT Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 09:09 AM
Response to Original message
7. Keep in mind that ALL stocks are down
not just those three. I'm no expert, I'm not about to make any buy suggestions, but the basics of do your homework and investigate the real worth and the financials of a company is as important now as ever before.

There are HUGE buying opportunities out there.
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ThomWV Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 09:15 AM
Response to Original message
8. There are just under 3,000 companies listed on the NYSE - and you are a clever fellow to name 3
As Exxon continues to rack up quarterly profits in the tens of billions (just under $50 billion net last quarter) of dollars and your focus is on a couple of losers and one that will be around long after both you and I are in the grave.
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Botany Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 09:49 AM
Response to Reply #8
12. those were just examples
BTW which one do you think will be around long after I am in my grave/
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screembloodymurder Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 09:43 AM
Response to Original message
10. DOW Chemical will rebound this week.
I expect to see it over $8/share.
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exboyfil Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 09:47 AM
Response to Original message
11. Stocks of companies who sell stuff to the government
Since the government can borrow or print money. Otherwise I am not sure.

GE has an inside track on the Green movement so watch the money (remember Quo Bono, who benefits)

I think AIG and GM equity holders are toast. The AGI stinking corspe is only being kept animated to funnel money to Goldman Sachs and others. It should have been staked last year before Paulson opened up the vault.

GM will end in bankruptcy but reform with the GM name as a much smaller car company (at least fewer product lines).

Chrysler will be broken up and its more popular brands possibly sold off.

I would take the position that you should bet against any company in which the government took an equity interest (obviously the buyer of last recourse).

I am holding onto my 40% (now 30-35%) equity position which I took on Inauguration Day in the broad market. Hopefully I won't regret it. Possibly looking to put 20% of my cash into directed investments (if I can figure out which).



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Botany Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 10:03 AM
Response to Reply #11
13. up into now my money (very little) was in
50% index funds

25% international

15% small cap

10% T-Bills and Govt. notes

I have lost about 35% of value in it.
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exboyfil Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 10:18 AM
Response to Reply #13
14. I had 50% stock/50% cash when this started
Off loaded about 30% of the equity during the crash (some fairly early - more later). Used 40% to purchase TIPS when they were at 3%-3.2%+Inflation (my best move so far). Made the stupid mistake of going back in on equities to avoid being whipsawed. I am probably down about 15% when you consider the TIPS growth (of course I have no intention of selling the TIPS - they and S.S. are my base retirement so that I won't have to eat dog food). I am expecting some mega inflation on the other side of this crash.

Amazing how Bush could wipe out Clinton's second term gains, and his mismanagement is now working on Clinton's first term.
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Botany Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 10:37 AM
Response to Reply #14
15. it will be interesting to see what companies will be on ...
... the S.P. Index in the future. I am think of risking a small amount in some picked stocks that are
way under valued right now and have a chance to be around in the long run.

Not unless we are going totally in to the dumpster I think the market will make the money back in
the long run .... i just hope that Obama, the DoJ, and the SEC clean house.

I was shocked to find out the Merryl Lynch now thinks that they "may have lost" an additional
100s of millions of dollars in currency transfers and credit swaps.
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exboyfil Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 11:20 AM
Response to Reply #15
16. As they say in Casablanca
Captain Renault: I'm shocked, shocked to find that gambling is going on in here! ... Rick: Yeah, it's pretty bad timing. Where were you, say, ten years ago?

I am convinced these freakin' masters of the universe could not find their backsides with both hands. They must have been spending too much time with prostitutes.

It will be like Hercules in the Aegean stables. I am not sure that Obama has the right people for it (in my opinion Geithner is already coopted and I question Holder's judgement and commitment). I think some of the most aggressive FBI agents who are looking to make a name for themselves be put with SEC investigators with some commitment. The rest of the SEC should be dismantled and all the leadership fired.
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Botany Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-08-09 11:26 AM
Response to Reply #16
17. good points
the sizes of the loses and the amounts of money that were being made well beyond
what any bank or normal market should have shown tells me that Madoff et all had
to be paying off some regulators.
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