***Official*** 2008 Stock Market Thread

[ivan2]

anyone know if SKF is on the list of stocks that you can not short?

 

[ponyo]

added another batch of Amex at $36.47. Have another order waiting at 36 and 35.5.

 

[ponyo]

bought some GE at 24.97. I'm expecting a rally once bailout is approved.

 

[imported_Lothar]

Mr. Buffett strikes again...Sees tasty red meat. As usual Warren isn't doing anything except licking his chaps in this kind of market.

Warren Buffett's Berkshire Hathaway Inc. is investing at least $5 billion in Goldman Sachs. In addition to buying $5 billion in preferred stock, Berkshire also got warrants to buy another $5 billion in Goldman's common stock.

Berkshire's preferred stock in Goldman will pay 10 percent and can be bought back any time at 10 percent premium. The warrants allow Berkshire to buy $5 billion in common stock at $115 per share any time over the next five years.

http://biz.yahoo.com/ap/080923...n_sachs_berkshire.html

 

[Slew Foot]

Buffet sees Paulson handing his old buddies at GS a huge bundle of taxpayer cash.

 

[Mill]

Originally posted by: LuckyTaxi

Originally posted by: TridenTBoy3555
A-I-G HAS THE BEST STOCK EVAR.... Damn, should have bought a 1,000 shares and sold them. (They hit like 1.7, could have bought and made a few grand)

yea tell me about it. I got a hundred share, so here's hoping to a much larger gain in the next few months!

Yeah, well I don't. I had AIG for 15 years and I sold at 5.90 a fucking share. I hope no one is able to ride this bitch back up because they fucked those of us who had been with the company for a long time. Such is life -- I know, but I didn't expect the bailout. They wanted damn long enough to release it.

 

[ponyo]

Originally posted by: Lothar
Mr. Buffett strikes again...Sees tasty red meat. As usual Warren isn't doing anything except licking his chaps in this kind of market.

Warren Buffett's Berkshire Hathaway Inc. is investing at least $5 billion in Goldman Sachs. In addition to buying $5 billion in preferred stock, Berkshire also got warrants to buy another $5 billion in Goldman's common stock.

Berkshire's preferred stock in Goldman will pay 10 percent and can be bought back any time at 10 percent premium. The warrants allow Berkshire to buy $5 billion in common stock at $115 per share any time over the next five years.

http://biz.yahoo.com/ap/080923...n_sachs_berkshire.html

This is type of environment Buffett thrives in. He has cash to make deals. I remember when he bought Amazon debt back in '01 or '02 at a discount, he bought it in Europe so he could be paid back in Euro. This is why he's the best.

 

[ponyo]

Just finished listening to Buffett interview on CNBC. He thinks bailout will happen and is playing that way. I agree with him and that's the reason I've been buying the last two days. He thinks the govt will make money from the bailout and would buy it himself if he had the money.

 

[ponyo]

If you look at Goldman chart yesterday, you don't think someone got word Buffett was looking to buy? Goldman was dropping while the market was at par and then raced up from the low to close positive while the market dropped 160+. You think the SEC cares?

 

[ivan2]

seems like everything is looking good so I shorted GG at 36 bucks. MSFT also looking like a good long candidate this morning but I am going to read more about their sector.

 

[ponyo]

added another batch of GE at 24. I'm going to keep layering in. If this bailout don't happen, we're all going to be screwed anyways. So I'm playing like it's going to happen.

 

[JS80]

Congress needs to get punched in the ovaries.

 

[flashbacck]

Originally posted by: JS80
Congress needs to get punched in the ovaries.

For resisting the deal?

 

[JS80]

Originally posted by: flashbacck

Originally posted by: JS80
Congress needs to get punched in the ovaries.

For resisting the deal?

For not acting quickly and for this political grandstanding

 

[flashbacck]

Originally posted by: JS80

Originally posted by: flashbacck

Originally posted by: JS80
Congress needs to get punched in the ovaries.

For resisting the deal?

For not acting quickly and for this political grandstanding

Given the usual panicky behavior of politicians, I'm surprised they are taking their time. And since they're expecting to spend between 500 billion and 1 trillion of taxpayer money, I'm glad they are.

I think the bailout deal as it is blows for taxpayers. Bernake and Paulson are talking about buying debt above their current low prices, and the government doesn't get anything like an equity stake in return. Why are they paying more than what the current market price for this debt is? That doesn't make any sense at all. It's a great deal for the companies dumping debt, but taxpayers get f'd.

 

[cheezy321]

Damn, Volume was crazy low on a lot of stocks today. Looks like everyone is just sitting and waiting.

 

[IHateMyJob2004]

Originally posted by: Naustica
If you look at Goldman chart yesterday, you don't think someone got word Buffett was looking to buy? Goldman was dropping while the market was at par and then raced up from the low to close positive while the market dropped 160+. You think the SEC cares?

Why would the SEC investigate something like this? It happens all the time. it's usually several days ahead of an announcement though, like earnings.

 

[IHateMyJob2004]

Originally posted by: Naustica
added another batch of GE at 24. I'm going to keep layering in. If this bailout don't happen, we're all going to be screwed anyways. So I'm playing like it's going to happen.

Your not the only one noticing GE!

It's the 30% of their business that is finance that has killed them. Just a road bump though.

 

[IHateMyJob2004]

Originally posted by: flashbacck

Originally posted by: JS80

Originally posted by: flashbacck

Originally posted by: JS80
Congress needs to get punched in the ovaries.

For resisting the deal?

For not acting quickly and for this political grandstanding

Given the usual panicky behavior of politicians, I'm surprised they are taking their time. And since they're expecting to spend between 500 billion and 1 trillion of taxpayer money, I'm glad they are.

I think the bailout deal as it is blows for taxpayers. Bernake and Paulson are talking about buying debt above their current low prices, and the government doesn't get anything like an equity stake in return. Why are they paying more than what the current market price for this debt is? That doesn't make any sense at all. It's a great deal for the companies dumping debt, but taxpayers get f'd.

Did you read about what Buffett said today? That he expects that the government will actually make money on this deal. tax payer money? It's not exactly a black or white issue. There is lots of gray and when it comes to fiannce, you are best off trusting Warren

 

[imported_Lothar]

Originally posted by: Naustica
If you look at Goldman chart yesterday, you don't think someone got word Buffett was looking to buy? Goldman was dropping while the market was at par and then raced up from the low to close positive while the market dropped 160+. You think the SEC cares?

http://biz.yahoo.com/rb/080924...ansachs_sharesbiz.html

 

[flashbacck]

Originally posted by: IHateMyJob2004

Originally posted by: flashbacck

Originally posted by: JS80

Originally posted by: flashbacck

Originally posted by: JS80
Congress needs to get punched in the ovaries.

For resisting the deal?

For not acting quickly and for this political grandstanding

Given the usual panicky behavior of politicians, I'm surprised they are taking their time. And since they're expecting to spend between 500 billion and 1 trillion of taxpayer money, I'm glad they are.

I think the bailout deal as it is blows for taxpayers. Bernake and Paulson are talking about buying debt above their current low prices, and the government doesn't get anything like an equity stake in return. Why are they paying more than what the current market price for this debt is? That doesn't make any sense at all. It's a great deal for the companies dumping debt, but taxpayers get f'd.

Did you read about what Buffett said today? That he expects that the government will actually make money on this deal. tax payer money? It's not exactly a black or white issue. There is lots of gray and when it comes to fiannce, you are best off trusting Warren

I did, and I do trust Buffett. What he said was:

" They shouldn't buy them at what they're carrying, what the carrying value is, necessarily. They should buy them at the kind of prices that are available in the market. People who are buying these instruments in the market are expecting to make 15 to 20 percent on those instruments. If the government makes anything over its cost of borrowing, this deal will come out with a profit. And I would bet it will come out with a profit, actually."

As it stands, the government wants to buy them for more than market price.

I think this sorta elaborates more on my concern:
http://www.clusterstock.com/20...-s-dirty-little-secret

 

[ponyo]

Here's a scary thought. What if the market is currently holding because of the optimism of the bailout. Once the bailout is approved, they sell on the news and cause panic selling. We drop much further from here until the true bottom is found. Without short covering to prop up the price, stocks sell off hard.

I have to think the smart people believe Congress will pass the bailout bill. Then, the question is why aren't they buying stocks in anticipation? Hmm...

 

[imported_Lothar]

Originally posted by: Naustica
Here's a scary thought. What if the market is currently holding because of the optimism of the bailout. Once the bailout is approved, they sell on the news and cause panic selling. We drop much further from here until the true bottom is found. Without short covering to prop up the price, stocks sell off hard.

I have to think the smart people believe Congress will pass the bailout bill. Then, the question is why aren't they buying stocks in anticipation? Hmm...

Because I don't make my investment decisions based on anticipation of a bailout.
I invested in Americredit because it's an excellent company, the balance sheet looks ok, and it was screaming "undervalued". Not because of some stupid government bailout.

I'm impressed by that company. I still think the fair value of that company is somewhere around $10/share.
I'm sitting at an average purchase price of $7.82 now. There's a lot of volatility in the stock, but I'm still holding for the long run.

GE is also getting better the more I look at it. *licks his chaps*

 

[evident]

how do you guys feel about picking up FRE at $1.84? I have a feeling it will tank once again after this bailout discussion is over, but i am a newbie to the stockmarket game.

 

[ponyo]

Originally posted by: evident
how do you guys feel about picking up FRE at $1.84? I have a feeling it will tank once again after this bailout discussion is over, but i am a newbie to the stockmarket game.

I think much of the rise now in Fannie and Freddie is due to short covering. I sold my Fannie at $1.30 and now owe my wife a nice dinner. If you decide to play, just make sure you're not holding when the music stops and only play with money you can afford to lose.