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XLexusTech 10-28-2014 06:25 PM

Quote:

Originally Posted by GregWeld (Post 577751)
So here's a couple more of those "priced for perfection" stocks -- which in my opinion has little to do with the actual performance of a growth company...


Yelp! Reports it has 256% growth from the previous quarter -- the stock get hammered! Down 12% in 5 days...

FaceBook -- Huge growth in almost every metric - but not good enough - BAM! Drops like a rock after hours - it's down 10%

What do we learn from this kind of action?? Seriously? What's the take away... the companies have HUGE growth -- they're making money...

You learn that the STOCK PRICE isn't always connected to the actual facts.. and when that price is connected to huge expectations... even if the company does really really well.... YOU GET HAMMERED in the price.

Are these stocks good to buy on the dips? If I was a young man looking for some long term growth -- I'd be a buyer of FaceBook on the pull back. Not much but I'd dip a toe in. THEN WAIT! Wait for them to report another quarter... Never go jumping into the deep end without knowing the depth of the pool! Check it out first...

What does a 10% drop really mean? To me it means If I were to sell today I would only get just over 100% increase in share price on my FB stock... I wish things got "hammered" like tat more often :-)

GregWeld 10-28-2014 06:32 PM

Quote:

Originally Posted by XLexusTech (Post 577783)
What does a 10% drop really mean? To me it means If I were to sell today I would only get just over 100% increase in share price on my FB stock... I wish things got "hammered" like tat more often :-)




AWESOME!! And that's the thing the talking heads do over and over.... they harp on the minute by minute action... and talk about "big drops" (that are 1 or 2% in reality).... and nobody ever does the calculations that if the market is UP 30% - so what if you drop 5 or 10% !!


But it is what we live with.

Buying LOW is fantastic! It's when people come in at the much higher prices and then take a hit... then they throw in the towel. The minute they do - the stock goes up and recovers the drop and adds some! LOL


BTW --- Have to add --- This is a good time to go look at a long term chart of FaceBook (FB) even the one year chart looks RIGHT -- low on the left and climbing to the right. Choppy sure... but the trend is your friend! LOL

ErikLS2 10-28-2014 09:40 PM

Just a quick share, not pitching this stock. I've been a mechanic for far too long so I've long known that Snap On makes the best tools, period, and you pay accordingly. Anyway, I decided to look at the stock because it's something, like Greg says, "I know" (even heard Jim Cramer prasising it). I can talk to my tool guy each week and I will know right away if something with the company is sliding. Bought some on this recent dip, but look at this chart over 5 years, or even 10.

http://finance.yahoo.com/echarts?s=S...22linear%22%7D

GregWeld 10-29-2014 06:35 AM

See how easy this is? Brilliant! You simply invested in something you actually know - and trust - the chart is right - it pays a dividend... and you're right there to see if you start to notice anything going sideways.

It's when people try to get "cute" when things go badly. Buying stuff they know nothing about - because they heard some dipwad on TV saying it's a "buy". Or buying what they think they can put $500 in to and be a millionaire by the end of the week...

I've looked at Snap-On many times - each time it's the low dividend that's kept me out of this fantastic name. I'm a customer. I love their stuff... maybe I'll buy some today.






Quote:

Originally Posted by ErikLS2 (Post 577819)
Just a quick share, not pitching this stock. I've been a mechanic for far too long so I've long known that Snap On makes the best tools, period, and you pay accordingly. Anyway, I decided to look at the stock because it's something, like Greg says, "I know" (even heard Jim Cramer prasising it). I can talk to my tool guy each week and I will know right away if something with the company is sliding. Bought some on this recent dip, but look at this chart over 5 years, or even 10.

http://finance.yahoo.com/echarts?s=S...22linear%22%7D


GregWeld 10-29-2014 06:59 AM

Done! I bought 500 Snap-On (SNA) with a limit order @ $130.25

A very small buy for me because of the terrible dividend. But now when the big truck rolls up to the shop - I'll feel better being an owner! LOL


Funny about that truck -- and my dealer is a good guy -- I always tell the guy - "just let me look - I don't NEED anything..." But I can never get out of there without buying stuff!

GregWeld 10-30-2014 07:03 PM

Looks like GoPro (GPRO) owners will wake up very happy tomorrow.... They SMASHED earnings numbers.


That's what a stock MUST do when they're priced for perfection... they can't just equal... they certainly can't even hint that business was only just great... This one smashed the expectations.

AMSOILGUY 10-31-2014 04:55 AM

Can someone explain to me looking at these 3 stocks why one would be a better choice over the other? I enjoy all 3 companies drinks and wouldn't have a problem owning any of them. KO, PEP, DPS.

KO=Div/yield .31/2.95 and cost 41.40

DPS=Div/yield .41/2.38 and cost 68.94

PEP=Div/yield .65/2.74 and cost 95.65



All 3 looking at the 5yr start lower on the left and get higher on the right. Are you better off purchasing more of one stock and earning multiple Div or purchasing less stock and earning a higher Div? I'm sure the name of the game is to try and figure out which one is going to do better long term and thats what you should base you choice off of. But lets just say for discussion sake that they are going to continue to perform equally.



Or am I trying to make it to simple?

WSSix 10-31-2014 06:57 AM

Quote:

Originally Posted by AMSOILGUY (Post 578208)
Can someone explain to me looking at these 3 stocks why one would be a better choice over the other? I enjoy all 3 companies drinks and wouldn't have a problem owning any of them. KO, PEP, DPS.

KO=Div/yield .31/2.95 and cost 41.40

DPS=Div/yield .41/2.38 and cost 68.94

PEP=Div/yield .65/2.74 and cost 95.65



All 3 looking at the 5yr start lower on the left and get higher on the right. Are you better off purchasing more of one stock and earning multiple Div or purchasing less stock and earning a higher Div? I'm sure the name of the game is to try and figure out which one is going to do better long term and thats what you should base you choice off of. But lets just say for discussion sake that they are going to continue to perform equally.



Or am I trying to make it to simple?

When I'm faced with the decision between multiple good choices, this is what I typically default to. I'm in a growth mode with some choices and simply steady eddy with others though. Because dividend payments are based on the number of shares owned, I go for as many shares as I can for a set dollar amount on any stock I'm looking for growth in. I did this when comparing Altria and Phillip Morris. I could get many more shares with the price of Altria at the time. This in turn allowed me to receive many more shares with each dividend payment.

Everyone is going to be different and have different priorities, tolerances, and goals. A good, general rule though is to invest in quality names so that over the long haul, you are comfortable with your choice and make money. With that said, I don't think you'd be making a bad choice investing in any of those choices. You may want to dig a little more into Pepsi though as they do have a large snack food component to them versus purely beverages like Coke and Dr Pepper/Snapple. That may or may not matter to you. I just mention it as it is a differentiator that I doubt most people would know about the company when it's mentioned.

GregWeld 10-31-2014 06:58 AM

Quote:

Originally Posted by AMSOILGUY (Post 578208)
Can someone explain to me looking at these 3 stocks why one would be a better choice over the other? I enjoy all 3 companies drinks and wouldn't have a problem owning any of them. KO, PEP, DPS.

KO=Div/yield .31/2.95 and cost 41.40

DPS=Div/yield .41/2.38 and cost 68.94

PEP=Div/yield .65/2.74 and cost 95.65



All 3 looking at the 5yr start lower on the left and get higher on the right. Are you better off purchasing more of one stock and earning multiple Div or purchasing less stock and earning a higher Div? I'm sure the name of the game is to try and figure out which one is going to do better long term and thats what you should base you choice off of. But lets just say for discussion sake that they are going to continue to perform equally.



Or am I trying to make it to simple?




You failed to add to the thought process the TOTAL RETURN of the 3 --- go back and check those numbers out then come back. I'd do it for you but I won't. Ya gotta do the work on your own. See if the TR helps you make the choice.

GregWeld 10-31-2014 07:10 AM

Trey....


Good thought process. The only "correction" I would do for you (and others) is that dividends are paid in dollar amounts.... but the MATH is PERCENTAGES. 3% dividend is 3% dividend regardless of the number of shares owned. So - If you were comparing two stocks and they both paid the same PERCENTAGE dividend but ones share price is TWICE AS HIGH.... it's still earning the same percentage dividend on your dollars invested (given that you'd have the same exact dollars to invest).


10K invested in one company buys you 100 shares ---- and in the other company only 50 shares --- but the PERCENTAGE of return (dividend) would still be the exact same.

I got what you were saying.... but mathematically it doesn't work out the way you were saying.


HERE is what I would rather see people thinking about..... THE FUTURE as in 10 or 20 years from now. What is the BRAND they like and buy. Don't get trapped in the past. Do you no longer buy the product even though if you did - you'd buy "X"? OR ---- is there another company that might be in the SAME CONSUMER STAPLES SPACE that has better growth and a higher dividend.... So don't get locked into just comparing Coke vs Pepsi.... expand that to look at other "food/grocery/retail/consumer" products for comparison. Are their names that you love even better? That have better growth? That are just as stable?

Not saying there is ---- I'm saying open yourselves up to expanding your research. It will make you a better investor - it will give you ideas for future money - it will make you more rounded in your knowledge so that when you do make a choice -- you KNOW that's the right one for you!


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