Help me pick some stocks!

[Cfour]

Ok, I am basically looking for help on what comanies to invest in.. I'm looking for probably 4-5 here, and have about $3,000 to get the ball rolling. I'm really looking for companies that will show a good gain in about 3 years, without being too risky. So far I think I'm going to get some more AOL TW stock (already have some, looks promising caus its so low) and probably an airline (US?). What do you guys think I should get?

Tony

 

[PsychoAndy]

***WARNING****Past performance is not indicative of future results****WARNING***

Consult a certified investment professional rather than an internet messageboard.

This has been my public service message of the day.

-PAB

 

[stockjock]

I'm a financial consultant...buy a fund!!

 

[jlee75]

my family and friends are throwing money into Worldcom. And there is a perfectly legitimate reason in doing so. Worldcom being the largest carrier in the US ofr communication, the US government will never allow them to go fully under. Therefore their stock being so low right now, it's a perfect opportunity in our opinion to get like 20,000 shares of something that we believe will eventually recover. Its' a buy and forget about it stock. Dont' throw all of your money into it.

The airlines are a good bet as well. That's like the travel backbone of the US. They won't let them go under either.

People fail to realize that bankruptcy is a good opportunity for a company to restructure and increase their profits. Although it takes some time, patience is always good.

Good luck.

 

[Cfour]

I have a stockbroker, but I want to go to talk to him with some ideas... I figured some people in the ATOT community are pretty knowledgable about this kind of stuff. Besides, people ask for help with tons of stuff in their lives instead of going to a specialist in that field, and they still get responses here.

Tony

 

[Cfour]

stockjock: any fund reccommendations?

jlee75: thanks for the advice, I also agree with the "buy low, sell high" technique. i think there are tons of great buys out there right now.. just trying to find the best ones.

Tony

 

[dude8604]

NVDA

 

[stockjock]

Ask you financial advisor about Investment Company of America fund...has a great track record and I believe that this was the first year it had a negative return and its been around a very long time

 

[jlee75]

Other "buy low, sell high" to look into would be Lucent Technologies and JDS Uniphase.

 

[nagger]

Put some money in AMD, Nvidia and Sun Microsystems stocks.

They're really cheap right now

 

[kherman]

Originally posted by: Cfour
Ok, I am basically looking for help on what companies to invest in.. I'm looking for probably 4-5 here, and have about $3,000 to get the ball rolling. I'm really looking for companies that will show a good gain in about 3 years, without being too risky. So far I think I'm going to get some more AOL TW stock (already have some, looks promising caus its so low) and probably an airline (US?). What do you guys think I should get?

Tony

FREEZE! Your picks are VERY BAD! Stocks go down for a reason!
Want advice:
1) Do not buy funds. They are a poor investment!
2) Only buy stocks that give dividends.
3) If you don't know why you're buying a stock, don't buy it.
4) Only buylow risk stocks that are financially strong.
5) Don't know about Value Line, I highly sugest you learn about it ASAP (valueline.com). It's freely available at libraries.
6) $3000, sounds like you just opened up a Roth-IRA. Go with higher yielding stocks. REITs and banks are a good jumping point. (if this is a Roth-IRA)

I am willing to give you some more pointers if you request help.

Here's a good set of stocks to start with. AND SOME PERCENTAGES TO INVEST IN THEM. caps doh
KIM (30%)
GD (25%)
PFE (20%)
one more???? Hrmmm, go with a bank. Bank of America is a good one. Can't remember the ticker. (25%)
I'll I'm saying is put more into KIM and Bank Of America than PFE and GD. If you get these, you should be up in 3 years. Actually, consider Merck (MRK) also. They have some legal issues right now, but they also have a 4+% yield right now!

Psycho Andy is partially right in saying "***WARNING****Past performance is not indicative of future results****WARNING***".
The thing to remember though, is past performance is also a measure of managemnents abiulity to produce, which is repeatable.

NVDA iss not as good as many think. Due to the tight competition, pricing wars cut into profits. You can do better. If you want tech, go with LLTC. It's dropped alot, but it's future is bright.

My web page has some stock stuff there. It's out of date, so ignore the stock picks for now. my e-mail is there, so you can communicate with me via e-mail if you'd like (much easier that way). my web page is in my profile...

Karl

Am I the only one here to think one of the best compaies ever and right now is Coke? That's a VERY safe bet!!!!!!

 

[kherman]

ignore---subscribing to thread this time around

 

[wyvrn]

I bought an audio tape by one of Wall Street's biggest investors (forgot name now). He says before you buy stock, do a thorough investigation. Look at all their financial statements for at least 3 years, any news on the company, and the state of the industry they are in. Are they a market leader? Is the stock, in your opinion, currently undervalued? The biggest thing to look for, he said, was management. If a company has all the right measurables (assets vs. debt, good PE values), but lackluster management, then more than likely the company will not grow that much and you will have a mediocre or poor investment.

If you do not have the time to do all of this research, then it would probably be a good idea to consult a financial professional. Otherwise, its like gambling because you don't really have any basis for your stock picks.

BTW, I am a licensed financial planner, but I don't practice anymore.

 

[kherman]

Originally posted by: jlee75
my family and friends are throwing money into Worldcom. And there is a perfectly legitimate reason in doing so. Worldcom being the largest carrier in the US ofr communication, the US government will never allow them to go fully under. Therefore their stock being so low right now, it's a perfect opportunity in our opinion to get like 20,000 shares of something that we believe will eventually recover. Its' a buy and forget about it stock. Dont' throw all of your money into it.

The airlines are a good bet as well. That's like the travel backbone of the US. They won't let them go under either.

People fail to realize that bankruptcy is a good opportunity for a company to restructure and increase their profits. Although it takes some time, patience is always good.

Good luck.

WCOM: THIS IS VERY BAD ADVICE!!! penny stocks became penny stocks for a reason. Only buy this with "play money" that you are (willing to/can afford to) loose.

AIRLINES: See my previous post concenring stiff competition and pricing wars cutting into profits. airlines are bad!

The last comment about bankruptcy. many people also forget that these companies went bankrupt for a reason. It's wishful thinking. Why invest in such a company, when companies like Coke, Pfizer, Merck etc are around which are all solid companies. Always have been and most likely always will be? A cheap stock is not cheap for no reason!

Another rule:
- Do not get emotional over the market! There is no place for emotion in investing.

 

[kherman]

Originally posted by: Cfour
stockjock: any fund reccommendations?

jlee75: thanks for the advice, I also agree with the "buy low, sell high" technique. i think there are tons of great buys out there right now.. just trying to find the best ones.

Tony

Buy low/sell high. i used to do that and learned my lesson. Do long term hold only and do covered calls on them. That's the safer way to make a bundle. Doing Buy low/sell high will only add to stress in your life.

 

[N8Magic]

Originally posted by: PsychoAndy
***WARNING****Past performance is not indicative of future results****WARNING***

Consult a certified investment professional rather than an internet messageboard.

This has been my public service message of the day.

-PAB

Werd to that.

I learned this lesson the hard way.

 

[kherman]

Originally posted by: wyvrn
I bought an audio tape by one of Wall Street's biggest investors (forgot name now). He says before you buy stock, do a thorough investigation. Look at all their financial statements for at least 3 years, any news on the company, and the state of the industry they are in. Are they a market leader? Is the stock, in your opinion, currently undervalued? The biggest thing to look for, he said, was management. If a company has all the right measurables (assets vs. debt, good PE values), but lackluster management, then more than likely the company will not grow that much and you will have a mediocre or poor investment.

If you do not have the time to do all of this research, then it would probably be a good idea to consult a financial professional. Otherwise, its like gambling because you don't really have any basis for your stock picks.

BTW, I am a licensed financial planner, but I don't practice anymore.

Warren Buffet?

 

[ElFenix]

Originally posted by: kherman

Originally posted by: Cfour
stockjock: any fund reccommendations?

jlee75: thanks for the advice, I also agree with the "buy low, sell high" technique. i think there are tons of great buys out there right now.. just trying to find the best ones.

Tony

Buy low/sell high. i used to do that and learned my lesson. Do long term hold only and do covered calls on them. That's the safer way to make a bundle. Doing Buy low/sell high will only add to stress in your life.

do what now?

 

[vladimir]

PCL

 

[jlee75]

i never stated anything that would suggest day trade. i was suggesting long term. read my first post. it went bankrupt because of over inflated revenue statements. and as for your statement regarding only using money you can afford to lose, well that holds true for any investment. you don't go and take your living expense money and invest in anything.

anyways....

 

[roncarter]

pick enron

hahahhaha

 

[kherman]

Originally posted by: ElFenix

Originally posted by: kherman

Originally posted by: Cfour
stockjock: any fund reccommendations?

jlee75: thanks for the advice, I also agree with the "buy low, sell high" technique. i think there are tons of great buys out there right now.. just trying to find the best ones.

Tony

Buy low/sell high. i used to do that and learned my lesson. Do long term hold only and do covered calls on them. That's the safer way to make a bundle. Doing Buy low/sell high will only add to stress in your life.

do what now?

But stocks that are good long term holds (at "low" prices) and do covered calls. Covered Calls are a form of options trading. it's one of the safest ways to do options trading. To realistically do it, you'll need $7500+ in one stock. Also, covered calls are done in round lots (multiples of 100).
Here's a LINK
This link isn't very good, but it's a starting point.

here's a quick example. You buy a stock, XYZ, for $50 in December 2002. Say, 200 shares of XYZ. So, you now own $10,000 in XYZ. Also, remember, you only buy stocks with dividends. Say a 2% yearly yield. You can sell the March 2003, 60 call for $1. At 200 shares, you make $200. That's about 2% of your initial investment. basically, the call is a contract you make with the buyer of hte call. The buyer, has the right, at any time till the experation date (in march '03) to buy your lot of 200 shares for $60. If you selll it at $60, three months from now, who cares? You just made 20% plus the premium and chances are the stcok is now "overpriced" anyways. So, in three motnhs, you made 2% on hte call's premium (the $200 you got), got one dividend payment (0.5%) and sold the stock at a 20% gain. That's 22.5% in 3 months.

There danger is that if the stock drops to $25, you can't sell it unless you buy the call back. Or if the stock goes up to $70, you have to sell it for $60.

There are some risks, and it is something you truely have to understand before getting involved in it. The best thing to do is to go to google and do a search for "covered call" and learn that way. I'll admit that when I first learned of covered calls, it was VERY confusing, but after going down the buy low/sell high route, I have to say that covered calls are alot less taxing on my stress levels.

 

[kherman]

Originally posted by: jlee75
i never stated anything that would suggest day trade. i was suggesting long term. read my first post. it went bankrupt because of over inflated revenue statements. and as for your statement regarding only using money you can afford to lose, well that holds true for any investment. you don't go and take your living expense money and invest in anything.

anyways....

I just looked up WCOM. it's currently trading for $0.123, or about 12 cents. There is no reason for someone to buy this stock. It is not safe stock. Yes, safe is a relative term in the world of the stock market, but there is no way, someone without money to burn should buy WCOM. Thus, it has to be money you can afford to loose/don't need.

I agree with ron carter on this topic. Why not diversify into Enron?

My friends that are into investing (over $500K in their protfolio) would never buy WCOM or Enron as a serious long term hold. One did by some Enron, i believe. I think he bought $700 of it. if it rebounds great! But he has ZERO expectations of it doing anything good. He used his "play money" to get into the hold just for fun. This is his money to burn.

OK, I don't wan this to trun into a flame war, so I'll close on saying this. The only reason someone, in my oppinion, would buy WCOM is because they have gotten emotional with their money.

EDIT:

I made my list of 4 stocks to buy.
Bank Of America
PFE
GD
KIM

You stated WCOM, please list three more as i am curious of what your other stock interests are.

 

[wyvrn]

No, I think it was Peter something. He isn't quite as big as Buffett, but he is a respected name in the industry. If I find the casette tape, I will let you know who it is.

Originally posted by: kherman

Originally posted by: wyvrn
I bought an audio tape by one of Wall Street's biggest investors (forgot name now). He says before you buy stock, do a thorough investigation. Look at all their financial statements for at least 3 years, any news on the company, and the state of the industry they are in. Are they a market leader? Is the stock, in your opinion, currently undervalued? The biggest thing to look for, he said, was management. If a company has all the right measurables (assets vs. debt, good PE values), but lackluster management, then more than likely the company will not grow that much and you will have a mediocre or poor investment.

If you do not have the time to do all of this research, then it would probably be a good idea to consult a financial professional. Otherwise, its like gambling because you don't really have any basis for your stock picks.

BTW, I am a licensed financial planner, but I don't practice anymore.

Warren Buffet?

 

[jlee75]

Emotional with my money. HAHAHA

Well i did list some other ones, but you're already set on your high horse w/ "no penny stock" mantra. I have moeny invested in JDS Uniphase, Lucent, Intel, IBM, P&G, Qlogic, and Conexant to name a few.

Right now, it is of MY opinion (and no one has to take it) that it's bargain season out there. Are you trying to tell me that the US government will actually allow the collapse of Worldcom? Or that of Lucent? Or of the major airlines? I hardly think so. Go check and see how many times the government has bailed out these airlines.