Stock ideas

[chambersc]

idk if it's been mentioned yet but emigrant direct and ING direct are at 4% and 3.75% respectively AND they're FDIC insured. Can't go wrong with it, imo.

 

[JS80]

Originally posted by: mwtgg

Originally posted by: JS80
Negative. We send over US Dollars to Japan, they send it back here by buying US goods or US bonds. Win/Win situation.

GM Bankruptcy will be good for the US Economy. It will disband the UAW and make GM more flexible. I guarentee after that they will start making awesome cars.

That's laughable. Having a Top 10 global company go bankrupt would be disastrous.

This is not a laughable scenario. Chapter 11 bankruptcy is a business strategy that they can utilize to RESTRUCTURE their business. This would rid the UAW contract, help restructure their debt/equity. They would not do a Chapter 13 bankruptcy, which would be liquidation of their business.

A successful Chapter 11 bankruptcy case is K-Mart. They came out of chapter 11, and I bought their stock at 18 and Sears bought it at over 100. I believe GM can successfully pull this off, assuming the courts will hand the UAW a death certificate.

 

[JS80]

Originally posted by: richardycc
most REIT have high dividend, as they have to pay out ~90% of the profit, beause its a turst. I used to own FB, around $20/share, paid like $1.25 every qtr, until their parent (FBR) company bought it back, and screwed the whole thing up. FBR is around $10, and still pays out 20cents/qtr, thats like ~7-8%/yr.

Be careful on what type of REIT you buy. RE paper holding REITs are going down the tube because they borrow short and lend long. The 2 yr and 10 yr yields have inverted and the spread has all but disappeared, along with many REIT's earnings.

Look for REITs that hold physical real estate. Avoid FBR.

 

[JS80]

Originally posted by: Engineer

Originally posted by: JS80

Originally posted by: Engineer

Originally posted by: JS80

Originally posted by: IHateMyJob2004

Originally posted by: JS80

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

GM is headed towards bankruptcy.

I honestly don't know how they stay afloat, but they stated that bankruptcy is unlikely. The tru problem si that hte US needs to start buyuing "made in america" or we'll all be in a world of hurt down the road.

Negative. We send over US Dollars to Japan, they send it back here by buying US goods or US bonds. Win/Win situation.

GM Bankruptcy will be good for the US Economy. It will disband the UAW and make GM more flexible. I guarentee after that they will start making awesome cars.

And give us a trade deficit of 700,000,000,000+ and rising per year.

By the way, Japan has liquidated US government debt this year while China has stopped buying it (20billion or so for the year). Carribbean Banking Centers now seems to be the big US Government debt purchaser outside the country.

What do you suppose they will do with all those dollars? Hoard the cash?
US Dollars have to be spent in the US (eventually). Whether it's through investment or trade, either of which is GOOD for the US economy. Engineers understand engineering, and economists understand economics.

There's nothing that states that those dollars can't simply be exchanged for other currencies. Nothing states that they have to be spent here. Since the Japanese are selling US government debt, they apparantely seem to think it's not a good of a deal as it once was.

You an economist?

Econ major and I was a junior economist for the federal government out of college.

The keyword is "eventually." US dollars must come back to the US "eventually." Whether they exchange it for euros or pounds, it won't affect our economy. It's when it comes back to the US for investment or trade is when our economy will benefit from it.

 

[Engineer]

Originally posted by: JS80

The keyword is "eventually." US dollars must come back to the US "eventually." Whether they exchange it for euros or pounds, it won't affect our economy. It's when it comes back to the US for investment or trade is when our economy will benefit from it.

So if the Japanese (for example) exchange their dollars for YEN, it does what for the US? Where is the investment from that? Also, not a very good trade...we buy Barbie from China and they buy our water companies, oil companies, etc. as investment.

 

[JS80]

Originally posted by: Engineer

Originally posted by: JS80

The keyword is "eventually." US dollars must come back to the US "eventually." Whether they exchange it for euros or pounds, it won't affect our economy. It's when it comes back to the US for investment or trade is when our economy will benefit from it.

So if the Japanese (for example) exchange their dollars for YEN, it does what for the US? Where is the investment from that? Also, not a very good trade...we buy Barbie from China and they buy our water companies, oil companies, etc. as investment.

When they exchange the dollars for yen, that means the government gave the party yen for the dollars. Then the government sends the dollars back here to invest in treasuries, or they hold the cash in the reserve. And then when a Japanese company wants $5 billion in Intel chips and $10 billion in Microsoft software, they exchange their yen for dollars to purchase the US goods.

Yes, a lot of chinese citizens are purchasing equity and debt in US companies. Why is that so bad? Americans invest in foreign companies, foreigners invest in America. It stimulates our economy. Americans eventually "own less" of American assets, but that is inevitable with globalization. There will be an equilibrium at which the trade deficit will be zero and efficiency is maximized.

Of course there is a caveat: China pegs the Yuan and artificially makes it cheap. This helps the Chinese economy grow at something like 9% a year, which is an unsustainable rate of growth, and highly likely to cause a bubble. China's bubble will pop, and when it does they will fall hard (harder than US stock market bubble pop).

 

[Engineer]

Originally posted by: JS80

Originally posted by: Engineer

Originally posted by: JS80

The keyword is "eventually." US dollars must come back to the US "eventually." Whether they exchange it for euros or pounds, it won't affect our economy. It's when it comes back to the US for investment or trade is when our economy will benefit from it.

So if the Japanese (for example) exchange their dollars for YEN, it does what for the US? Where is the investment from that? Also, not a very good trade...we buy Barbie from China and they buy our water companies, oil companies, etc. as investment.

When they exchange the dollars for yen, that means the government gave the party yen for the dollars. Then the government sends the dollars back here to invest in treasuries, or they hold the cash in the reserve. And then when a Japanese company wants $5 billion in Intel chips and $10 billion in Microsoft software, they exchange their yen for dollars to purchase the US goods.

Yes, a lot of chinese citizens are purchasing equity and debt in US companies. Why is that so bad? Americans invest in foreign companies, foreigners invest in America. It stimulates our economy. Americans eventually "own less" of American assets, but that is inevitable with globalization. There will be an equilibrium at which the trade deficit will be zero and efficiency is maximized.

Of course there is a caveat: China pegs the Yuan and artificially makes it cheap. This helps the Chinese economy grow at something like 9% a year, which is an unsustainable rate of growth, and highly likely to cause a bubble. China's bubble will pop, and when it does they will fall hard (harder than US stock market bubble pop).

At what point, if any, then do the twin deficit matter? (Ronald Reagan: Deficits don't matter).

 

[JS80]

Originally posted by: Engineer

Originally posted by: JS80

Originally posted by: Engineer

Originally posted by: JS80

The keyword is "eventually." US dollars must come back to the US "eventually." Whether they exchange it for euros or pounds, it won't affect our economy. It's when it comes back to the US for investment or trade is when our economy will benefit from it.

So if the Japanese (for example) exchange their dollars for YEN, it does what for the US? Where is the investment from that? Also, not a very good trade...we buy Barbie from China and they buy our water companies, oil companies, etc. as investment.

When they exchange the dollars for yen, that means the government gave the party yen for the dollars. Then the government sends the dollars back here to invest in treasuries, or they hold the cash in the reserve. And then when a Japanese company wants $5 billion in Intel chips and $10 billion in Microsoft software, they exchange their yen for dollars to purchase the US goods.

Yes, a lot of chinese citizens are purchasing equity and debt in US companies. Why is that so bad? Americans invest in foreign companies, foreigners invest in America. It stimulates our economy. Americans eventually "own less" of American assets, but that is inevitable with globalization. There will be an equilibrium at which the trade deficit will be zero and efficiency is maximized.

Of course there is a caveat: China pegs the Yuan and artificially makes it cheap. This helps the Chinese economy grow at something like 9% a year, which is an unsustainable rate of growth, and highly likely to cause a bubble. China's bubble will pop, and when it does they will fall hard (harder than US stock market bubble pop).

At what point, if any, then do the twin deficit matter? (Ronald Reagan: Deficits don't matter).

As long as you grow your economy, current incurrence of debt doesn't matter. Of course if your economy goes to the crapper, all sorts of bad things happen. See South America for examples.

Trade deficits I suppose can have a negative effect if all of a sudden the world markets started selling dollars, which would also mean they are selling treasuries, which would cause rates to go up and foreign goods prices to increase which equals inflation and the economy would come to a standstill. I don't ever forsee this happening because of all the places in the world the US has the most stable and liquid markets. Not only that the US has the strongest military in the world, and if we felt like it could take over Canada and Mexico immediately and the world couldn't do anything about it.

 

[Taggart]

I've been looking at Phelps Dodge (PD)...CNN/Money called it a 'rock solid stock.'

13% yield :shocked:

CNN/Money Article

They produce copper, carbon black, magnet wire and continuous-cast copper rod. Phelps Dodge Mining Company is involved in vertically integrated copper operations including mining, concentrating, electrowinning, smelting, refining, rod production, marketing and sales and related activities.

 

[Engineer]

Originally posted by: JS80

Originally posted by: Engineer

Originally posted by: JS80

Originally posted by: Engineer

Originally posted by: JS80

The keyword is "eventually." US dollars must come back to the US "eventually." Whether they exchange it for euros or pounds, it won't affect our economy. It's when it comes back to the US for investment or trade is when our economy will benefit from it.

So if the Japanese (for example) exchange their dollars for YEN, it does what for the US? Where is the investment from that? Also, not a very good trade...we buy Barbie from China and they buy our water companies, oil companies, etc. as investment.

When they exchange the dollars for yen, that means the government gave the party yen for the dollars. Then the government sends the dollars back here to invest in treasuries, or they hold the cash in the reserve. And then when a Japanese company wants $5 billion in Intel chips and $10 billion in Microsoft software, they exchange their yen for dollars to purchase the US goods.

Yes, a lot of chinese citizens are purchasing equity and debt in US companies. Why is that so bad? Americans invest in foreign companies, foreigners invest in America. It stimulates our economy. Americans eventually "own less" of American assets, but that is inevitable with globalization. There will be an equilibrium at which the trade deficit will be zero and efficiency is maximized.

Of course there is a caveat: China pegs the Yuan and artificially makes it cheap. This helps the Chinese economy grow at something like 9% a year, which is an unsustainable rate of growth, and highly likely to cause a bubble. China's bubble will pop, and when it does they will fall hard (harder than US stock market bubble pop).

At what point, if any, then do the twin deficit matter? (Ronald Reagan: Deficits don't matter).

As long as you grow your economy, current incurrence of debt doesn't matter. Of course if your economy goes to the crapper, all sorts of bad things happen. See South America for examples.

Trade deficits I suppose can have a negative effect if all of a sudden the world markets started selling dollars, which would also mean they are selling treasuries, which would cause rates to go up and foreign goods prices to increase which equals inflation and the economy would come to a standstill. I don't ever forsee this happening because of all the places in the world the US has the most stable and liquid markets. Not only that the US has the strongest military in the world, and if we felt like it could take over Canada and Mexico immediately and the world couldn't do anything about it.

Maybe why treasury rates are rising as China stopped buying our debt and Japan started Selling debt! :shocked:

Also, don't worry about invading Mexico...they're beating us to the punch! 😛

Sorry OP to derail the thread...learning a little here! 🙂

Now back to your regular scheduled stock finding service, already in progress! 🙂

 

[JS80]

Originally posted by: Engineer

Originally posted by: JS80

Originally posted by: Engineer

Originally posted by: JS80

Originally posted by: Engineer

Originally posted by: JS80

The keyword is "eventually." US dollars must come back to the US "eventually." Whether they exchange it for euros or pounds, it won't affect our economy. It's when it comes back to the US for investment or trade is when our economy will benefit from it.

So if the Japanese (for example) exchange their dollars for YEN, it does what for the US? Where is the investment from that? Also, not a very good trade...we buy Barbie from China and they buy our water companies, oil companies, etc. as investment.

When they exchange the dollars for yen, that means the government gave the party yen for the dollars. Then the government sends the dollars back here to invest in treasuries, or they hold the cash in the reserve. And then when a Japanese company wants $5 billion in Intel chips and $10 billion in Microsoft software, they exchange their yen for dollars to purchase the US goods.

Yes, a lot of chinese citizens are purchasing equity and debt in US companies. Why is that so bad? Americans invest in foreign companies, foreigners invest in America. It stimulates our economy. Americans eventually "own less" of American assets, but that is inevitable with globalization. There will be an equilibrium at which the trade deficit will be zero and efficiency is maximized.

Of course there is a caveat: China pegs the Yuan and artificially makes it cheap. This helps the Chinese economy grow at something like 9% a year, which is an unsustainable rate of growth, and highly likely to cause a bubble. China's bubble will pop, and when it does they will fall hard (harder than US stock market bubble pop).

At what point, if any, then do the twin deficit matter? (Ronald Reagan: Deficits don't matter).

As long as you grow your economy, current incurrence of debt doesn't matter. Of course if your economy goes to the crapper, all sorts of bad things happen. See South America for examples.

Trade deficits I suppose can have a negative effect if all of a sudden the world markets started selling dollars, which would also mean they are selling treasuries, which would cause rates to go up and foreign goods prices to increase which equals inflation and the economy would come to a standstill. I don't ever forsee this happening because of all the places in the world the US has the most stable and liquid markets. Not only that the US has the strongest military in the world, and if we felt like it could take over Canada and Mexico immediately and the world couldn't do anything about it.

Maybe why treasury rates are rising as China stopped buying our debt and Japan started Selling debt! :shocked:

Also, don't worry about invading Mexico...they're beating us to the punch! 😛

Sorry OP to derail the thread...learning a little here! 🙂

Now back to your regular scheduled stock finding service, already in progress! 🙂

ROFL good point. Wow I didn't realize how threadjacked this got.

On my investment calender:
Currently:
Long LTON, ARRS
AMZN Put contracts

In January:
Jan06 AAPL puts
Feb06 GOOG puts
NDX puts

Still thinking about:
May06 CRM puts
May06 MRVL puts

 

[LS20]

everyone buy SLB 🙂 🙂

 

[Taggart]

Originally posted by: kranky
Altria Group.

This is a buy IMO. It will head towards >20 PE territory as the litigation risk continues to decrease and the company breakup is announced.

 

[Taggart]

Originally posted by: Slew Foot

GM is even more risky but theyre paying a whopping 10% now

They will most likely cut the dividend. I wouldn't touch GM w/ a 10 meter cattle prod 😛