Investing 102

[barrrf]

So if I understand this correctly - If I owned 1 share of Apple at $100 after the split I would then own 7 shares @ $14.29?

Meaning if said share value changes by $1 then I'll be making/losing $7 vs the $1 I would've made/lost if the split didn't happen?

[GregWeld]

Originally Posted by barrrf

So if I understand this correctly - If I owned 1 share of Apple at $100 after the split I would then own 7 shares @ $14.29?

Meaning if said share value changes by $1 then I'll be making/losing $7 vs the $1 I would've made/lost if the split didn't happen?

CORRECT.


You'll get 7 shares for every one you owned --- but of course, you'd also divide the current price by 7

On MONDAY they'll begin to trade at the new split adjusted price.


Will be interesting to see if people BUY because it's now "affordable" -- or if the current holders SELL because now they have 7 times as many shares.

We need more buyers than sellers... it's just real simple that way. :>)

[barrrf]

Guy at work claims he owns Apple stock. He was all on the fence about what to do with the stock - this morning its a little late. Might as well hold it now.

I know a lot of people who want to buy it just because of the name. Those who know nothing about trading. That may be enough to increase the value of the stock in and of itself.

Lettuce hope there are more buyers than sellers.

[Vince@Meanstreets]

Aapl is a long stock. He shouldn't panic, $1000 dollars worth is still a $1000 worth of shares. He just has more to play with.

[GregWeld]

I've discussed here many times - that this is NOT a stock pickers thread... but that we have to use stocks to discuss all the things that you should be paying attention to in order to either invest (buy) or to know when to sell... or when to take a profit (taking some off the top when you have a nice gain).. or perhaps when it might be prudent to "average down".


I've often stated that paying attention to FUNDAMENTAL changes to the businesses you're invested in is probably the single most important "metric" to good investing. These fundamental changes can be good - or they can be bad.

It would take three pages to describe "fundamental"... so let's just make it real easy and say that it's anything that's big and basic that you would ASSume would be important longer term.


So this morning - let's use McDonalds (MCD). I just read that SALES have slipped again. Down 1%... and that the CEO has once again stated they have some "challenges".

I sold out of my MCD position well over a year ago based on my personal feelings -- and I did that because I felt (gut hunch) that peoples eating habits are changing. There seems to be a movement for healthier eating habits - and I'd include myself as being one of those folks that pays more attention to how they're eating. I eat WAY less hamburgers and milkshakes than I used to (I'm still short and fat - but WTF - I feel good about myself! LOL). I also felt the stores quality was slipping. Cold food - dirty tables and floors - and just generally a slip in way I personally viewed MCD retail outlets. That, to me, is FUNDAMENTAL. And I've said that investing is simple if we just look around and react to what we see/feel.

Fundamentally - when you have SLIPPING SALES... i.e., sales going DOWN - that doesn't bode well for an investment. So if you compare this to another company in the same space - let's say Chipotle Mexican Grill (CMG) and their sales are UP 10% (just making this up)... then maybe there's something you should be thinking about. Don't just let things like this slip by you - open your mind to INVESTING - and ask yourself if there's a better place for your money... whatever that is.... Just don't pass off fundamental changes, shrug your shoulders, and bury your head in the sand because you actually have to THINK about your investments.

Look at the 10 year chart of Wells Fargo Bank (WFC) versus Bank of America (BAC)... the difference is staggering! And one made your portfolio pretty snappy and one sunk you like a boat anchor... (I own WFC)

If Apple computers (AAPL) stores were absolutely swamped with customers last Xmas - and this year you walk by and there's nobody in them - That is a fundamental change you should pay attention to! (I own this name)

One of the reasons I advocate for owing fewer names (but no more than 5% in any investment -- is so that you can scan the news quickly for information on your investments. If you own 50 names - you won't even be able to remember what they are! If you own 10 or 20 -- you can stay on top of 'em.

[Code510]

Not to change the subject y'all have going....but I actually am looking at investing.

This morning I was driving to work and it just hit me: I need to start doing something for retirement. There's a lot of reasons for this thinking, but those aren't important.

When I was younger, I had a Roth IRA with ING Direct. During college I cashed it out in order to live and keep my debt to a minimum. It was only about 5-6K or so, not 50-60K.

I see that ING Direct is now owned by Capital One 360. Should I start another Roth IRA with them? I do love how you guys buy and sell stocks...and I want to get up to that level, but right now time isn't affording me that luxury, nor do I have the skill/knowledge to do that.

So here's my question: What company should I start a Roth IRA with?

Thanks for the help guys!

[toy71camaro]

Originally Posted by Code510

Not to change the subject y'all have going....but I actually am looking at investing.

This morning I was driving to work and it just hit me: I need to start doing something for retirement. There's a lot of reasons for this thinking, but those aren't important.

When I was younger, I had a Roth IRA with ING Direct. During college I cashed it out in order to live and keep my debt to a minimum. It was only about 5-6K or so, not 50-60K.

I see that ING Direct is now owned by Capital One 360. Should I start another Roth IRA with them? I do love how you guys buy and sell stocks...and I want to get up to that level, but right now time isn't affording me that luxury, nor do I have the skill/knowledge to do that.

So here's my question: What company should I start a Roth IRA with?

Thanks for the help guys!

Welcome to the group!

As far as where to open the account, I would suggest somewhere you're comfortable with (ie. do you need a local branch or no? personally, Having a branch local does nothing for me). And the costs.

I opened mine through Sharebuilder, via Costco. If your a Costco member to to their Services page and check out the link through to Sharebuilder. They usually give you a credit for opening an account. On top of that, their market trades are $6.95. Which is on the cheaper side of the industry if i recall. Their "Auto investment" trades (happens on Tuesdays) are only $2.

By the way, they're also owned by Capital 1 now. I've been using them for several years and havent had any issues.

[GregWeld]

Originally Posted by Code510

Not to change the subject y'all have going....but I actually am looking at investing.

This morning I was driving to work and it just hit me: I need to start doing something for retirement. There's a lot of reasons for this thinking, but those aren't important.

When I was younger, I had a Roth IRA with ING Direct. During college I cashed it out in order to live and keep my debt to a minimum. It was only about 5-6K or so, not 50-60K.

I see that ING Direct is now owned by Capital One 360. Should I start another Roth IRA with them? I do love how you guys buy and sell stocks...and I want to get up to that level, but right now time isn't affording me that luxury, nor do I have the skill/knowledge to do that.

So here's my question: What company should I start a Roth IRA with?

Thanks for the help guys!

This has been covered here many times --- and there's really no right answer except to use a "discount broker". Brokerage fees can, and do, affect your returns... so you want to keep those costs low.

Personally I use several - but for different reasons. Some investments I need help with - some I don't. For me personally - I don't want to have too much at any one company - so I spread it around to reduce risk.

But the point is - if you're comfortable with the website - and or just like a particular company - then go with that one. Investing is more about putting money away - INVESTING (not gambling) and reaping the rewards over time.

When you feel you have some time -- go to page one and start reading... it will help you overall and that's what this thread has tried to be about. Not WHAT to do but WHAT TO THINK ABOUT AND WHY....

[barrrf]

Originally Posted by GregWeld

I've discussed here many times - that this is NOT a stock pickers thread...

Soooo where is that thread then?

[GregWeld]

Originally Posted by barrrf

Soooo where is that thread then?

Think about it this way.... Catch a man a fish - or teach him how to fish...