Investing 102

[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.

[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...

[Bucketlist2012]

Originally Posted by GregWeld

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!

Greg, Yes suddenly ...That was sad... That was my morning routine ever since I almost died in 2009. Since then I have been recovering. So i get the suddenly you're dead thing really good.

Now you know why I have been taking large chunks of life..I won't stop taking chunks of life from now on.. A couple of near death's will focus you really quick.

Tim Russert was another guy, not financial, but could get to the roots..fairly unbiased too. Dead suddenly.

Yes, Cats, Coffee, CNBC, and checking LatG and my portfolio. And check the news mainly to learn more. Since I don't move my assets too much, the noise is just that.. NOISE.. Yesterday, and today have been quite nice..

Sure only unrealized gains, but still nice to wake up to large gains

[Bucketlist2012]

Originally Posted by 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...

Oh man, I must really read your posts... Well done... At 52, I am now living off Dividends.. i am not doing too bad, but I see that i am not getting everything I can, out of my money YET>

Your knowledge is great.. I am learning how to maximize my Money. I own a lot of KMP.. It has never let me down.. I will double check before the 31.. i may add more...I am a energy distribution whore...

[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.

[GregWeld]

Originally Posted by solarguy09

Yesterday, and today have been quite nice..

Sure only unrealized gains, but still nice to wake up to large gains

I got a good chuckle out of that.... So that was my "lesson" on "earnings season".... this time around "earnings" seem to be going OUR WAY.... they can easily go the other way.... but I was trying to bring them up so people might pay just a bit of attention to them and to get a relationship of what happens to the market "in general".... so the next time we're in "the season" -- people will understand what the heck the talking heads are squawking about.


RE: Unrealized gains -- and the market

When I started 2011 I had great gains going into the beginning of the year - then thru summer (the summer swoon = Sell in May and go away) - all my gains were erased and I went negative (I used that period to ADD to positions)... and by the end of the year I had all my gains back plus (and I'd collected all those wonderful dividends on top of that!)

FOLKS READING THIS --- Let me tell you that when things are going WELL -- it's real easy to be an investor! It's easy to look real smart - and everything you touch turns to gold.... I can tell you that when things go south -- it's FAR FAR HARDER TO BUY and STAY INVESTED.... and everything you do looks like you're an idiot. THAT is when you go back to the charts -- look at them -- long term -- look at that dividend -- and look at what you're into... and sit back and relax. That's when you need to be COMFORTABLE with what you own. That will test your fortitude... it will push every panic button... and you'll quickly find out your "tolerance" levels. If you panic and SELL during these periods -- I'll be the guy buying the shares you're dumping and I'll pick up the gains when they come back....

[Sieg]

I understand the recommendation issues. I wasn't fishing for a blessing, just putting my cards on the table as an one example.......I guess. I'm always open to constructive criticism or speculation, everyone's wired a little differently and the more examples the better to some degree.

Personal preference vs. portfolio balance is a real challenge at times. This stock buying is similar to balancing wants and needs in the good old fashion buffet line.

I've been researching EFT's and one will most likely be my final purchase and I'll be done with the buying frenzy with the exception of some long over-due house cleaning when the time is right, then I'll sit back and watch results and adjust as needed.

PS - I trust you more than Cramer.........besides, you're taller.

[GregWeld]

Originally Posted by Sieg

Personal preference vs. portfolio balance is a real challenge at times. This stock buying is similar to balancing wants and needs in the good old fashion buffet line.

I totally agree -- there's too many choices out there... and it can be very hard when it's real money - and you're having to make choices.

That is why I've really tried to use EXAMPLES to discuss -- more for the THOUGHTS rather than the actual stock/etf/mutual fund being used for the discussion.

Just like my "I bought X" post -- Nobody should feel that's what THEY should do -- I'm just using the example so I can lead into the thought behind the buy or sale. I think that's where this thread is useful -- the discussion of the reasoning... and trying to BUILD on that reasoning by adding some tidbits along the way... so people can make their own decisions --- I don't care if they're only choosing which mutual fund to buy! At least they might look into them a bit more -- and use some thought process to choose A from B. If not -- we're all just wasting our time -- and I don't think we are. At least I hope not.