Investing 102

[GregWeld]

Originally Posted by ErikLS2

Greg, I agree on Cramer. Like I said I never watch him but I do think he knows what he's talking about. It's just nothing for the regular investor to pay attention to.

LOL --- Remember when I write -- I'm writing for EVERYONE that reads... so that wasn't aimed AT you.... it's more a general "here's my take on Cramer".

I think the guy is brilliant... but not an "investing 102" kinda guy. He's very sophisticated -- has more info at the tip of his tongue than about 90 guys do... but he's "too broad" and he's too out in front and makes too many calls buy sell and hold...

What I use him for is good general "fast" knowledge and he seems to have a very good overall take on many "situations". If I was just starting out in investing -- I wouldn't have a clue what he's talking about most of the time.

I think that after doing this for awhile -- what I've come down to believe is that you don't need to know every little detail about 10 gazillion stocks... That is the "noise" I refer to.

I wouldn't know how to start my day without him - but the guy I really miss is Mark Haines!

[Sieg]

http://www.bloomberg.com/news/2012-0...ash-hoard.html

The Apple movement is getting very interesting and educational.

[GregWeld]

Originally Posted by Sieg

http://www.bloomberg.com/news/2012-0...ash-hoard.html

The Apple movement is getting very interesting and educational.

Okay so here's the NOISE take on this... people will be talking for weeks about how much cash on hand - and what they should do with it etc... but that is NOISE. What you should focus on as an investor - regardless of what company - is all the simple stuff we've been discussing. My take on Apple -- GREAT COMPANY - beyond stellar growth.... no dividend but the growth makes up for that in spades... as long as we can go to the mall and see LINES of people buying stuff... how can you go wrong with a company like that? How many other companies have people lined up to spend $200 to $2000 a pop?

But I wouldn't "speculate" buying a company hoping they suddenly pay a dividend.... cause the minute you do that - they do something 180* out from that. So I'd just buy based on all the things I KNOW now... and whatever happens happens.

Does that make sense?

[Sieg]

It definitely makes sense.

The early analyst noise this morning about the stock target prices of $500 to $540 and one even speculating $599 left me unable to comprehend due to lack of knowledge. Then the early volume had a major spike that lead to 34.2 million shares for the day and the stock closes up $26 dollars for the day.

The popularity of their products can't be denied but I wonder how long their products can hold premium retail prices. In one way it appears they could be building one really big bubble.

The lack of dividend and the share price are tough to swallow for a little guy like me. I also don't perceive the company as overly generous in respect to their customer or share holder. I guess 5 shares and pray for a split may be better than the what if senerio.

[GregWeld]

Originally Posted by Sieg

It definitely makes sense.

The early analyst noise this morning about the stock target prices of $500 to $540 and one even speculating $599 left me unable to comprehend due to lack of knowledge. Then the early volume had a major spike that lead to 34.2 million shares for the day and the stock closes up $26 dollars for the day.

The popularity of their products can't be denied but I wonder how long their products can hold premium retail prices. In one way it appears they could be building one really big bubble.

The lack of dividend and the share price are tough to swallow for a little guy like me. I also don't perceive the company as overly generous in respect to their customer or share holder. I guess 5 shares and pray for a split may be better than the what if senerio.

I would never buy 5 shares - of anything....

2 grand to invest can get you good companies - with share prices below $50 and that pay a dividend.

[Sieg]

Originally Posted by GregWeld

I would never buy 5 shares - of anything....

2 grand to invest can get you good companies - with share prices below $50 and that pay a dividend.

The response answers my open ended statement.

I imagine there are number of shares vs price per share ratio's out there to aide in the decision. My basic fundamentals have been minimum of 100 shares with a price range of 20-40 and above 3.5% dividend. My recent additions have been MO, VZ, PFE, XLS.
I've been watching T closely as that dividend is hard to ignore even though it weights the portfolio I don't see the sector declining anytime soon.

Thanks again Greg, the educational value of this thread continues to compound.

[GregWeld]

Originally Posted by Sieg

The response answers my open ended statement.

I imagine there are number of shares vs price per share ratio's out there to aide in the decision. My basic fundamentals have been minimum of 100 shares with a price range of 20-40 and above 3.5% dividend. My recent additions have been MO, VZ, PFE, XLS.
I've been watching T closely as that dividend is hard to ignore even though it weights the portfolio I don't see the sector declining anytime soon.

Thanks again Greg, the educational value of this thread continues to compound.

I don't want to get into recommending individual stocks... that's a dicey business... and I'm not a broker or a friggin' stock guru (Cramer)... which is why I'm trying to stick to PRINCIPLES and THOUGHT PROCESS (for NEWBS)...

I agree that if you're a smaller investor -- you don't need to own TWO TELECOS... Pick the one you do business with - or like - or just want the dividend from. These are "steady eddies" with nice dividend streams... which is why and how I use them.


You might want to look into a holding I have - PFF - this is an ETF (exchanged traded fund - so is similar to a mutual fund). PFF invests in PREFERRED S&P dividend payers... It pays MONTHLY... and is currently yielding 6.99%

Read what they're into --- and make your own decisions based on YOUR research and needs NOT my "recommendation". I'm picking this stock (ETF) out as a way for a smaller investor to get some yield - get some diversity without having to pick several individual shares. The price will let you "in" .

I like to buy preferred shares if the yield is right - and it's in a name I know.... the DIFFERENCE is THEY PAY INTEREST not a dividend so the tax treatment is ordinary income. So watch out for that if you're buying that kind of thing OUTSIDE an IRA/SEP/ROTH type account.

WATCH OUT FOR WORDING --- DISTRIBUTION YIELD vs QUALIFIED DIVIDEND

One (DY) is ordinary tax and one (QD) is 15% tax max.

[Bucketlist2012]

Originally Posted by GregWeld

LOL --- Remember when I write -- I'm writing for EVERYONE that reads... so that wasn't aimed AT you.... it's more a general "here's my take on Cramer".

I think the guy is brilliant... but not an "investing 102" kinda guy. He's very sophisticated -- has more info at the tip of his tongue than about 90 guys do... but he's "too broad" and he's too out in front and makes too many calls buy sell and hold...

What I use him for is good general "fast" knowledge and he seems to have a very good overall take on many "situations". If I was just starting out in investing -- I wouldn't have a clue what he's talking about most of the time.

I think that after doing this for awhile -- what I've come down to believe is that you don't need to know every little detail about 10 gazillion stocks... That is the "noise" I refer to.

I wouldn't know how to start my day without him - but the guy I really miss is Mark Haines!

Greg, Mark was the guy on CNBC that just died ??? That guy I liked. I like Kudlow too.. There is a lot of noise about the ups and downs, but I need to watch something in the early AM with Coffee. I don't buy on the info, but it is good to get different perspectives on investments.

Cramer is moving at a fast pace, but I watch him sometimes to see where he is headed.. but don't blink, cause you will miss 5 things that he just said...hyper guy Cramer is...

[GregWeld]

Originally Posted by solarguy09

Greg, Mark was the guy on CNBC that just died ??? That guy I liked. I like Kudlow too.. There is a lot of noise about the ups and downs, but I need to watch something in the early AM with Coffee. I don't buy on the info, but it is good to get different perspectives on investments.

Cramer is moving at a fast pace, but I watch him sometimes to see where he is headed.. but don't blink, cause you will miss 5 things that he just said...hyper guy Cramer is...

Yes... Sadly Mark passed away suddenly. That guy could really drill down on the root issues.

My routine is up early - coffee pot - auger down in my corner of the sofa - put CNBC on and fire up the laptop. Check all the news and anything that might affect my stocks (looking for BIG NEWS - not noise)... and then read Lat G...

Being retired has it's pluses!

[GregWeld]

In fairness of reporting --- I used the weakness in AT&T (T) to add 5000 shares this morning. The dividend is huge -- and the "earnings miss" is explainable via the huge amount of iPhones they sold in the quarter (this costs them up front but builds revenues going forward) and the T-Mobile costs to take down that deal. I don't mind an earnings miss if it's not a lack of sales!


I also added 2000 shares of Kinder Morgan Partners (KMP) because they go ex-dividend (ex-dividend means anyone that owns it before that date gets this quarters dividend) on the 31st. It's been a stellar performer and pays a huge dividend.

Here's the investing 102 lesson on "ex-dividend"... you can choose to pick up the dividend (as I have done with this purchase).... or you can buy the stock on the dip that "USUALLY HAPPENS" after they pay the dividend - lowering your cost basis (which is half a dozen to one 6 to the other).... Since I live off my dividends -- I chose to add the shares now and get the cash. I already have a huge gain in the shares which equals half of what I just invested...