Investing 102

[pw2006]

Originally Posted by GregWeld

That's what I've been trying to PREACH -- get started -- post it up if you feel like it - let's all discuss it -- rip it apart - or learn from it (MSFT?) etc. but get started is the KEY point.

WITH THAT IN MIND -- I'd love to see "you all" post up some names and the reasons you think they're a good candidate for ownership.... let's get it up to 10 names -- a basic "portfolio" if you will.... and see what that looks like??

Kind of a "on paper" investment club??

Let's get this discussion going with a few stocks I am in. I included the ticker/name/industry/forward PE and dividend yield. Take a look at some of the stocks below, do your research and be comfortable with the company/charts before you buy. As Greg said, as soon as you press the buy button, someone out there knows and will drive the stock down.

VOD- Vodaphone primary owner of Verizon- (telecom)- 10.4 PE, 5.3% yield. I am looking for international smartphone growth exposure. Downside is I can't reinvest dividends in the form of stock. Alternative is VZ (Verizon)

BBEP- This is an MLP (oil/gas pipelines) with a forward pe of 7.7 and current yield of 9.1%. An alternative that i have owned for years is KMP, but you might wait for a little pullback.

F- Ford (automotive)- 5.8 PE, ~2% yield (kinda weak yield, so you may want to look at GE)

COP- Conocophilips (oil/gas)- ~8.5 PE with a 3.6% yield

LLY- Eli Lilly- (biotech)- 9.6 PE with a 4.7% yield
MRK- Merck- (biotech)- 10 PE with a 4.4% yield

PM- Phillip Morris (cigs)- 16.2 PE with a 3.9% yield (alternate is Altria ticker MO)

KFT- Kraft (food) 16.6PE with a 3% yield.

So with the above, stocks you are covering people that use cell phones, drive cars, heat their house, smoke cigs, have a prescription and eat.

[GregWeld]

Originally Posted by pw2006

Let's get this discussion going with a few stocks I am in. I included the ticker/name/industry/forward PE and dividend yield. Take a look at some of the stocks below, do your research and be comfortable with the company/charts before you buy. As Greg said, as soon as you press the buy button, someone out there knows and will drive the stock down.

VOD- Vodaphone primary owner of Verizon- (telecom)- 10.4 PE, 5.3% yield. I am looking for international smartphone growth exposure. Downside is I can't reinvest dividends in the form of stock. Alternative is VZ (Verizon)

BBEP- This is an MLP (oil/gas pipelines) with a forward pe of 7.7 and current yield of 9.1%. An alternative that i have owned for years is KMP, but you might wait for a little pullback.

F- Ford (automotive)- 5.8 PE, ~2% yield (kinda weak yield, so you may want to look at GE)

COP- Conocophilips (oil/gas)- ~8.5 PE with a 3.6% yield

LLY- Eli Lilly- (biotech)- 9.6 PE with a 4.7% yield
MRK- Merck- (biotech)- 10 PE with a 4.4% yield

PM- Phillip Morris (cigs)- 16.2 PE with a 3.9% yield (alternate is Altria ticker MO)

KFT- Kraft (food) 16.6PE with a 3% yield.

So with the above, stocks you are covering people that use cell phones, drive cars, heat their house, smoke cigs, have a prescription and eat.

That is a great looking group of stocks! I like the diversity - the yields - and they are mostly names you know and can describe their businesses.

The one EXCEPTION IMHO IS:

BBEP -- BreitBurn Energy Partners is what's called an MLP - that is a Master Limited Partnership...

When you compare charts of this - against KMP (Kinder Morgan Partners) it will make you want to throw up a little. BBEP has been DOWN 50% (vs KMP UP 123%) and then back up to "even" and for awhile it suspended it's dividend. And when it resumed it's dividend, it did so at a lower payout than the previous payout and is still paying out way lower than where it was (.44 now vs .52 in 2007). So for our INVESTING 102 -- this stock would be scary to own and has virtually no capital growth. Compared to XOM (EXXON) - CVX (Chevron) - KMP (Kinder Morgan Partners) just to pick 2 or 3 - with very nice charts - I'd prefer to own one of the steady eddies over this name. Just my opinion.


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FORD (F) -- I like to sprinkle my account with some "pure growth" plays. Not many but they're fun to gamble on - and this is IF you already have some of these other good names paying you these nice fat dividends. I own Apple for that reason (bought at $85) and have owned Ford several times since the $2 mark - and just sold my Starbucks (SBUX) for a nice gain. So IMHO it's OKAY to play with this kind of stuff because it gets you interested and you can make (or loose) some money. I'd bet on FORD in the long run and sleep well at night doing it.