Investing 102

[GregWeld]

Originally Posted by RECOVERY ROOM

I already have some Alcoa..Lol

Well Tracy -- I'm real sorry to hear that buddy... 'cause as an investment goes - it sucks bilge water. I'm a member of AA and that's their trading symbol... but I still wouldn't buy it!

[RECOVERY ROOM]

Originally Posted by GregWeld

Well Tracy -- I'm real sorry to hear that buddy... 'cause as an investment goes - it sucks bilge water. I'm a member of AA and that's their trading symbol... but I still wouldn't buy it!

Thats why I'm a regular reader of this thread...And still working like a dog every day. (Its going to be sold)

[GregWeld]

Not to turn this thread into the "stock pick of the day" kind of thread....

There have been a couple of "picks" by readers that are "gambles" or at least that's what they are in my opinion....

So this is outside Investing 102 --- but a stock I might purchase if I want to stick with my usual - when they're selling, I'm buying - mode of operation...

I'm looking at Banco Santander (STD) which I used to own - but it's now down around $7 a share (terrible PRICE performance) - but at this depressed level - it's paying a 12+% dividend.

This wouldn't be for the faint of wallet/heart - because this bank is squarely in the eurozone fight for it's life...

[pw2006]

Originally Posted by GregWeld

Not to turn this thread into the "stock pick of the day" kind of thread....

There have been a couple of "picks" by readers that are "gambles" or at least that's what they are in my opinion....

So this is outside Investing 102 --- but a stock I might purchase if I want to stick with my usual - when they're selling, I'm buying - mode of operation...

I'm looking at Banco Santander (STD) which I used to own - but it's now down around $7 a share (terrible PRICE performance) - but at this depressed level - it's paying a 12+% dividend.

This wouldn't be for the faint of wallet/heart - because this bank is squarely in the eurozone fight for it's life...

Don't let the ticker symbol scare you , this one looks very interesting. Lots of bad news has driven this stock down and they have been selling assets to increase their capital requirement. Despite the Euromess and selling some of their assets, they have stated that their intention is to maintain the dividend. They compare very favorably to their peers on many of the financial ratios (PE, price to book, net profit margin, etc), and they have a HUGE dividend. Like Greg said, this is not for the faint of heart as it will take a while for Europe to dig their way out of the current mess, but with a 12%+ yield, you are getting paid pretty good to wait.

[Bow Tie 67]

Here's a question, I refinanced to a 15 year fixed 3.375% loan. I'm paying extra principle to cut the loan to 9 years according to one online calculator an investment with a 6% return suggested go with investing vs buy down. Thoughts?

[ErikLS2]

Originally Posted by Bow Tie 67

Here's a question, I refinanced to a 15 year fixed 3.375% loan. I'm paying extra principle to cut the loan to 9 years according to one online calculator an investment with a 6% return suggested go with investing vs buy down. Thoughts?

Easist way to look at this is the extra money you're paying is effectively earning you that 3.375%. The general consensus is if you can earn more than that elsewhere then do that. You're already in the best mortgage position you can be in with that term and interest rate.

[Bucketlist2012]

Originally Posted by ErikLS2

Easist way to look at this is the extra money you're paying is effectively earning you that 3.375%. The general consensus is if you can earn more than that elsewhere then do that. You're already in the best mortgage position you can be in with that term and interest rate.

I am not positive, but I think that if you subtract inflation, you are paying even less for the money that you borrowed..Also the deductions..

For me, i have a 4% loan i could pay off, but my Investments pay way more.

Some people need a paid off house. But if the rate is that low, i personally won't pay it off..

If California does away with the mortgage deduction, i will have to re-crunch the numbers.

i think you have the sweetest of loans, and I would not put more on the principal..But that is such a personal decision.. Not my call... But IMHO