Investing 102

[WSSix]

That's exactly the attitude to have.

Case in point, my shares in OXY. It's an oil stock so it's down. I unfortunately bought at a record high a couple years ago so I'm perpetually down for now. However, I go into my cost basis where it lists all transactions, and I just sit back and look at all the free money I was given for being invested with them. It's not a lot but it adds up. It has really helped soften the current down trend.

[AMSOILGUY]

Originally Posted by WSSix

That's exactly the attitude to have.

Case in point, my shares in OXY. It's an oil stock so it's down. I unfortunately bought at a record high a couple years ago so I'm perpetually down for now. However, I go into my cost basis where it lists all transactions, and I just sit back and look at all the free money I was given for being invested with them. It's not a lot but it adds up. It has really helped soften the current down trend.

So besides the dividend you have earned over the last couple years. Seems like you can hold on and save your money and continue to purcahse more shares and consider them on sale? Correct me if I am wrong but that seems to be a main point I have taken from this discussion. Understand why you have the stock and when it go on sale purchase more?

[sik68]

Hi Greg / Others,

Sears announced it is going to offer 200 to 300 stores for sale to a REIT to raise cash, and lease them back. Any insights on what this can signal for a company that uses this strategy?

My thoughts are unchanged after the announcement: they cannot survive with the current business model. They raise one-time cash, so what...now their ongoing expenses are higher. Assets are to be bought and held, like we do... not sold.

[ErikLS2]

Originally Posted by sik68

Hi Greg / Others,

Sears announced it is going to offer 200 to 300 stores for sale to a REIT to raise cash, and lease them back. Any insights on what this can signal for a company that uses this strategy?

My thoughts are unchanged after the announcement: they cannot survive with the current business model. They raise one-time cash, so what...now their ongoing expenses are higher. Assets are to be bought and held, like we do... not sold.

To me this is the same thing as someone taking out a home equity line of credit because they need money.

[GregWeld]

Originally Posted by ErikLS2

To me this is the same thing as someone taking out a home equity line of credit because they need money.

Couldn't agree more with this statement. The retail world has changed... and Sears didn't - hasn't - or couldn't. IDK and really don't care because to me the store ceased to exist about 25 years ago. I wouldn't bet against them - but I wouldn't invest in this name either because it has just about nothing a guy wants in an investment. A dying business... in an overcrowded retail space... with virtually no hope of regaining it's luster. Buy / invest in businesses that are solid and not on the cusp of having a bankruptcy auction.

[AMSOILGUY]

Is anybody on here investing in 3D printing? Has this been talked about? I see lots of this being talked about in the news. I can't remember where or when but sometime this year I believe the first 3D car was printed. Whos leading the way in this technology?

[captainofiron]

Originally Posted by AMSOILGUY

Is anybody on here investing in 3D printing? Has this been talked about? I see lots of this being talked about in the news. I can't remember where or when but sometime this year I believe the first 3D car was printed. Whos leading the way in this technology?

believe it or not, I think (if I remember right) SpaceX and NASA (Marshall) have 3D printed rocket engine chambers.

they are very precise cross sections that normally take alot of welding/machining and many months to fabricate one, so 3D printing would be great here

[gearheads78]

Originally Posted by AMSOILGUY

Is anybody on here investing in 3D printing? Has this been talked about? I see lots of this being talked about in the news. I can't remember where or when but sometime this year I believe the first 3D car was printed. Whos leading the way in this technology?

Long term there will be huge winners here but its to early in the game to know who will come out on top. A year ago anything with the word 3D in it was just skyrocketing but they have all been on a steady decline since. I made a little money and sold when things started to fall back. Many have been really beat up over the last 6 months. I have re-purchased a little SSYS and I am currently a little down but I think long term it will pay out. DDD has really been killed but if it goes much lower I may buy a little again. Its a good company but HP announcing they are getting in the 3D game and them trying to incorporate all their companies they have bought is causing the stock to be really beat up. I have one more I own and am in the green on but it is a pure gamble so I won't even mention the name.

[Vince@Meanstreets]

Originally Posted by AMSOILGUY

So besides the dividend you have earned over the last couple years. Seems like you can hold on and save your money and continue to purcahse more shares and consider them on sale? Correct me if I am wrong but that seems to be a main point I have taken from this discussion. Understand why you have the stock and when it go on sale purchase more?

thats what I gather, buy more for the long.

As soon as OPEC reduces output, prices should come back or if another war breaks out.

[WSSix]

Originally Posted by AMSOILGUY

So besides the dividend you have earned over the last couple years. Seems like you can hold on and save your money and continue to purcahse more shares and consider them on sale? Correct me if I am wrong but that seems to be a main point I have taken from this discussion. Understand why you have the stock and when it go on sale purchase more?

Correct. If you pull up the 10 year chart on OXY, you'll see it looks great. If you do research on OXY, you'll see they are a solid company with a great history of paying a dividend and being managed properly. They are very big too. They just aren't as well known as the others because they don't have gas stations. They are down right now because of industry wide issues not something they have done. Nothing at OXY has changed to cause the price drop. So over the long run, I have no doubt they will do just fine and I'll make money. Right now would be a great time for me to buy because shares are much cheaper, ie on sale, compared to what my average cost basis is for all the shares I currently own.

For my particular situation, my intent at this point though is to simply wait until the beginning of next year when I go to make my next Roth payment. OXY is in my Roth account, and I've already maxed my contribution for 2014. If I had it in my regular brokerage account, I would have been buying more already.

One other good thing about OXY being down, or any dividend stock you're in, is that your dividend payment buys more. Remember, it's on sale. So OXY pays me for owning them, I get a larger chunk of shares with each payment they give me since the stock is on sale, and when the price goes up I make that much more on the free money they gave me for owning them.

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