Your Stock Picks for this Economy

[MJ DeMarco]

What stocks are you finding attractive as the market continues to fall?

How about closed-end funds? Many are trading well below NAV at huge discounts (obviously for a reason.)

Everything is on sale ... stocks, real estate, retail products ...

 

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[hakrjak]

I think just about anything bought at this level and held for a couple years is going to make you double digit profits. Tonight I took the rest of my 401k that was sitting in cash and divided it equally between my company's stock, and some ETF's we have available to us for international stock, low price value stocks, and core large cap stocks.

Good luck all --- With this strategy I'll either make a good profit, or end up dead broke.

- Hakrjak

 

[NerdSmasher]

Some of the wonderful ones I've noticed so far would be:

GE - At this rate it has a 6% dividend, and is still a great company to own, etc.
T - Also has a 6% dividend at these rates, and is a huge telecommunications company.
BP - Over 7% dividend, and it's a large oil company. Gotta have one of those!
AAPL - Just happens to be extremely volatile; and when it bottoms, always jumps up sharply.
JPM - In my opinion, the best bank out there at the moment; and it's quite cheap thanks to the credit problems.
PG - Just a good company
KO - May have missed this one, but it's among the most widely known names in the world, and sells a great bunch of products - plus had good earnings!
GOOG - Like AAPL, this one will spike upwards when people start liking stocks again.
CAT - Global construction is going crazy, and these people make the machines that allow it to happen. Plus it has a nice 3.5% dividend as well.
MCD - Nice dividend, great expanding company... it's McDonalds! What more needs to be said. Could be cheaper, though.



All of those except AAPL and GOOG are essentially meant to buy and hold; and all of them have dividends, pretty good ones at these low prices I might add. And that's why I believe they are great buys at these levels. Plus, of course, they're all great companies, in my opinion.
Additionally, the reason I picked a lot of dividend stocks is because the dividends are 2-3 times higher, if not more, because of the low prices of these stocks. And, for a buy and hold strategy, these can still be profitable even in a down market.

 

[hakrjak]

What about IP -- International Paper....

I was watching it drop 17% or whatever today, and thinking about how cheap it is now, and how great it's P/E is looking.

Paper & Wood products are still cyclical and dependable... Am I wrong or don't we still have a major tree shortage, and isn't China buying our lumber & wood products like crazy?

Also how about a trucking company. That business seems pretty recession proof. Groceries will still need to be trucked. The old saying holds true, "If it's here, a truck brought it!" JBHT looks solid....

PPG -- We're still in for some more mean hurricanes... Glass and glass products are going to continue to be in demand big time, regardless of the economy. Even if new construction is down, lots of replacement windows will be sold, etc

- Hakrjak

 

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[randallg99]

What about IP -- International Paper....

I was watching it drop 17% or whatever today, and thinking about how cheap it is now, and how great it's P/E is looking.

Paper & Wood products are still cyclical and dependable... Am I wrong or don't we still have a major tree shortage, and isn't China buying our lumber & wood products like crazy?

Also how about a trucking company. That business seems pretty recession proof. Groceries will still need to be trucked. The old saying holds true, "If it's here, a truck brought it!" JBHT looks solid....

PPG -- We're still in for some more mean hurricanes... Glass and glass products are going to continue to be in demand big time, regardless of the economy. Even if new construction is down, lots of replacement windows will be sold, etc

- Hakrjak

trucking industry seems like its ripe for a turnaround.... it was grossly and unjustly beat up, imo. that said, anything remotely affecting the economy for the worse will automatically impact all transportation

I never had luck with paper including pulps/mills... can't understand what makes that industry tick. even in the best of times, the sector seemed to lag but WTFDIK?

 

[kwerner]

As far as a mid to long term hold that could easily jump to $12 a share w/in the next 12-18 mo., I like Nvidia. Here are my reasons why:

* I believe that in difficult economic times your safest bets are to invest in companies that carry little debt, have solid cash flow, and control market share in their industry - Nvidia fits these criteria.
* They're #1 in their industry (manufacturing computer graphics processors).
* They have strong partnerships with all the major computer manufacturers.
* They're a very financially stable company (sitting on over $700 mil. in cash and have zero long term debt).
* They have a product that has steady demand.
* They spend the money on R&D to consistently raise the bar with their products, so that they remain #1.
* Their cashflow (although a bit erratic) is solid. And since they have the huge cash reserves and no LTD, they can afford a bit of volatility in their cash flow without having to worry about not meeting obligations.

(25% gain in the last 3 days)

 

[HenkHolland]

I think we aren't anywhere close to the bottom yet and I prefer to wait until then before picking any stock worth investing in. I expect the Dow to bottom out at around 7,000.
Until then I'll only use options to benefit from the movements, both up and down..

 

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[bflbob]

I've been listing my trades daily at this link:
http://www.thefastlanetomillions.co...trading/16876-any-one-else-short-selling.html

 

[kimberland]

I think it might be a rough couple years
so I'm looking for stocks with a solid dividend (pay daddy stocks)
and low debt or debt not coming due soon.

I won't get into specifics as I trade mostly the TSX.

 

[Mckenzie]

What stocks are you finding attractive as the market continues to fall?

How about closed-end funds? Many are trading well below NAV at huge discounts (obviously for a reason.)

Everything is on sale ... stocks, real estate, retail products ...

@MJ DeMarco, how about in this current market today? History repeating itself here! I'm looking at some of the CEFs now

 

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[GravyBoat]

What a resurrection!!

 

[Rabby]

More than stock picks, I'm looking at option spreads on the market indexes. I like to make spreads that take volitility in either direction and make profit out of it, and/or safely capitalize on the loss of time value on an option (since time value is a bitter enemy when it's on the other side).

I did just grab some AMRS shares since they are trading for pennies and the company is still doing interesting things, but that's nothing more than a speculation; they could restructure debt and reverse split again for all I know. I wouldn't call something like that a "stock pick" and certainly not a recommendation.

The other thing I like to look for when interesting things are going on are futures options. If I can figure out a commodity that will move as a result of current events, I like to buy the call or put, or a spread, on the future. I never deal in futures directly, as I have learned how terrifyingly fast they can move... I'll take the right to buy or sell over the obligation, thanks very much.

 

[Rabby]

Also, early stage companies that aren't on the public markets yet. It's times like these when I am happy to be shielded from the emotional decision making and mindless algorithms that sometimes influence the exchanges. At least, for my buy and hold strategies. For volatility trading or theory investing, when I find time to do it, public markets are great.

 

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[Mckenzie]

Also, early stage companies that aren't on the public markets yet. It's times like these when I am happy to be shielded from the emotional decision making and mindless algorithms that sometimes influence the exchanges. At least, for my buy and hold strategies. For volatility trading or theory investing, when I find time to do it, public markets are great.

@Rabby personally, how do you "shielded from the emotional decision making and mindless algorithms" that may sometimes influence the exchanges? Do you mean you don't read news?

 

[Mckenzie]

Anyone cares to share your experiences of taking advantages of the current intraday swings / market volatility? Did you do that 10 years ago in 2008? and how did you go? @Kevin88660? I saw you mentioned this NOTABLE! - The Coming Recession (2019-2020?) yesterday,

 

[Rabby]

@Rabby personally, how do you "shielded from the emotional decision making and mindless algorithms" that may sometimes influence the exchanges? Do you mean you don't read news?

Well, in fact I often don't read news, but that's not what I mean. What I mean is that I invest in companies that are not publicly traded.

Typically you have to prove a certain level of financial stability to invest in them, at least in the US (look up "accredited investor"). Since these company's stocks are not on a public exchange, nothing really happens to their values when people panic in the stock market. The only thing that affects them is whether or not they can sell their product, whether or not they can raise the next round of funding, etc.

Without market prices that are updated daily, you can't really tell on a given day if they are doing better or worse than yesterday, unless you call up the founders. I suppose you could see that as good or bad, but it suits my preferences. At least a gaggle of panicked owners can't mess up my asset by all selling at the same time based on their own emotional meltdown.

 

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