Tips on some cheap stocks to load up on

[imported_Lothar]

Originally posted by: dyna

I suggest that before you start trading individual stocks to try one of these trading services that gives you tips on what to buy. I did this and what I learned is that the valuation of stocks are mostly effected by momentum. Stocks are manipulated continuously and many times their price swings make no sense to what their actual profits and values. You can make a lot of money quick if you understand the details of this but it is a huge risk. When the market is turbulent like it is now, even the pros can't predict a stocks direction. Its best to start looking for good values once there is a noticable positive change in economic conditions, its more predictable and less risky.

Read books. That's all you need.
Everything else is pretty much rubbish.

You don't need to sign up to Barron's, IBD, or any other firms that give "hot" stocks/tips for a membership fee.

 

[nerp]

AMD

 

[IHateMyJob2004]

Originally posted by: Lothar
A stock that is <$10 is considered "cheap"?
Wow, this is too rich.

Originally posted by: IHateMyJob2004
JNJ is easily worth $90+. Currently trading at $70. Check out fwallstreet.com and find the DCF analysis there to understand why. It is a 4 part series on DCF (discounted cash flow) valuation where the author investigates why Warren Buffet bought JNJ.

And look into banks.
WFC and USB being the best to. If you like the yield, buy them.

And the best investing forum anywhere:
www.gurufocus.com <= I am a mod there

I second your choice of JNJ. I bought it first when it was in the late $50's.
I currently have an average purchase price of $62.03 on it and it's the 3rd largest holding after LUK and GILD.

I'm still a little wary on the banks though.

I visit there to read/check updates and stories of my gurus that I follow.
I take a peak in the forums once in a while. I registered, but have never posted there though.

For banks, one can do little more than piggy back Warren Buffet. recently, that means USB and WFC. In the next few weeks, his buys from last quarter will be announced. Should be interesting.

I also bought JNJ in the high $50s. Something like 90 cents from its 52 week low. I even paid less than Warren did before I even knew he was buying Knowing what I know about Beffutt, I think he might view JNJ as worth $110 or so.

 

[IHateMyJob2004]

Originally posted by: Lothar

Originally posted by: dyna

I suggest that before you start trading individual stocks to try one of these trading services that gives you tips on what to buy. I did this and what I learned is that the valuation of stocks are mostly effected by momentum. Stocks are manipulated continuously and many times their price swings make no sense to what their actual profits and values. You can make a lot of money quick if you understand the details of this but it is a huge risk. When the market is turbulent like it is now, even the pros can't predict a stocks direction. Its best to start looking for good values once there is a noticeable positive change in economic conditions, its more predictable and less risky.

Read books. That's all you need.
Everything else is pretty much rubbish.

You don't need to sign up to Barron's, IBD, or any other firms that give "hot" stocks/tips for a membership fee.

Margin of Safety (publsihed in 1991) sells for $1200+ on EBay for a reason. How many books on trading cost this much used

Anyways, read everything Benjamin Graham wrote and everything that Phillip Fisher wrote.

Web pages are few and far between that are worth while. fwallstreet.com and gurufocus.com are two that come to mind that are good.

 

[imported_Lothar]

Originally posted by: IHateMyJob2004

Originally posted by: Lothar

Originally posted by: dyna

I suggest that before you start trading individual stocks to try one of these trading services that gives you tips on what to buy. I did this and what I learned is that the valuation of stocks are mostly effected by momentum. Stocks are manipulated continuously and many times their price swings make no sense to what their actual profits and values. You can make a lot of money quick if you understand the details of this but it is a huge risk. When the market is turbulent like it is now, even the pros can't predict a stocks direction. Its best to start looking for good values once there is a noticeable positive change in economic conditions, its more predictable and less risky.

Read books. That's all you need.
Everything else is pretty much rubbish.

You don't need to sign up to Barron's, IBD, or any other firms that give "hot" stocks/tips for a membership fee.

Margin of Safety (publsihed in 1991) sells for $1200+ on EBay for a reason. How many books on trading cost this much used

Anyways, read everything Benjamin Graham wrote and everything that Phillip Fisher wrote.

Web pages are few and far between that are worth while. fwallstreet.com and gurufocus.com are two that come to mind that are good.

Won't pay such an amount for any book.
I am a value investor and will therefore get my money's worth by reading other books that offer better value.

If I'm that desperate for it, I'll either check my local libraries or go to the library of congress.
What exactly does this book preach that isn't already covered by other books?
I certainly wouldn't pay $1200 for a used 249 page book...especially if it will tell me something that I already know from previous readings.

So far I've read...
1) Intelligent Investor
2) Security Analysis
3) The Interpretation of Financial Statements
4) Common Stocks and Uncommon Profits
5) The Warren Buffett Way

There are billions of investment books out there. I choose to only spend both my time and money on those written by credible authors.

 

[imported_Lothar]

Margin of Safety is turning out to be much better than I expected, but it's still not worth the $1,000 price tag for a "used" book.
I've read about 30% of the book now.

I am a value investor, and therefore got the scanned PDF pages of the book for free[:shiftyeyes:] and binded them at FedEx Kinkos for $6.
I have 3 copies binded...One that I'll give to my best friend as a Christmas present(I'll tell him it's worth $1,000+ to make him feel better), and the other two I'll keep for myself.

If you can find this book at a library, or pay less than $100 for it from somewhere, or get to read it for free somehow[:shiftyeyes:]; it's worth it.

 

[StageLeft]

AOL, that stock is about to explode.

 

[imported_Lothar]

Originally posted by: Skoorb
AOL, that stock is about to explode.

Word on the street is that Yahoo is about to make an $83/share offer.

Buy! Buy! Buy!