Taking advantage of the latest Stock Market Pull back

jank

So with news coming out of the US that inflation is rising, Jobless numbers falling but consumer spending weaken it is of no surprise that the US stock markets the past few days have taken a hit.

Taking a very close eye on KO. Has dropped almost 10% since its high off 3 months ago and Morning Star has a fair value of $45 on it.
Another one is GM. The automaker is making steady gains in turning the business around. The US government is selling its stake in the company and Buffett himself is a big fan adding 15 million shares the past 1/4. Morning star has a fair value of $54 on it, currently selling for $34.55. Bargain?
Vow is another one but is more exposed to the Euro and the EU market.

Anyone see opportunities to buy?

gordongekko

I just don't see a lot of consumer confidence at the moment. I would rather keep my powder dry for the moment.

green_bow

jank wrote: »

So with news coming out of the US that inflation is rising, Jobless numbers falling but consumer spending weaken it is of no surprise that the US stock markets the past few days have taken a hit.

Taking a very close eye on KO. Has dropped almost 10% since its high off 3 months ago and Morning Star has a fair value of $45 on it.
Another one is GM. The automaker is making steady gains in turning the business around. The US government is selling its stake in the company and Buffett himself is a big fan adding 15 million shares the past 1/4. Morning star has a fair value of $54 on it, currently selling for $34.55. Bargain?
Vow is another one but is more exposed to the Euro and the EU market.

Anyone see opportunities to buy?

ford is a better buy than GM , yesterday was the time to buy it , was back 10% from its highs , pays a good dividend aswell , GM pays no dividend

general electric is another good buy , another good dividend payer and covers a range of sectors

jank

Anyone know much about Vodafone? Seems to be undervalued and should do nicely in any global recovery especially in Europe.

green_bow

jank wrote: »

Anyone know much about Vodafone? Seems to be undervalued and should do nicely in any global recovery especially in Europe.

Vodafone is a telecom , low growth but low volatility are the hallmarks of that sector + plenty of cash for generous dividends , id consider Vodafone or the likes of AT+T in America to be safer than bonds

Pennystockwhiz

In the short term you may make money buying pullbacks. The stock market is in a massive bubble and I wouldn't feel safe holding any stock in the long-term. It's just a matter of time before the next stock market crash.

green_bow

Pennystockwhiz wrote: »

In the short term you may make money buying pullbacks. The stock market is in a massive bubble and I wouldn't feel safe holding any stock in the long-term. It's just a matter of time before the next stock market crash.

buffett espouses the approach of " buy and hold forever "

if you take this advice , you will need to be willing to tolerate several crashes in your lifetime but in the end should average around 10% per anum gains , anyone who bought in 1983 , has seen this kind of return

btw , ive just come across what I think is a very good and relatively conservative ETF , ( VHYL ) , its a global high dividend fund with a very low .29% management fee and amongst its portfolio is general electric , procter and gamble , exxon mobil , can be bought on the Amsterdam exchange which saves FOREX

Pennystockwhiz

Buffett's buy and hold approach means risking losing 50% just to get a 10% return on your capital per annum.

Yeah I heard of VHLY on Bloomberg, it's the most geographically diversified high-yield dividend ETF available on the LSE

jank

Very close to pulling the trigger on KO. Want it under that $38 mark. It would then be a hold for me for years and years.

Pennystockwhiz

This is a low-beta stock, so you would expect it to lag the S&P. Studies have shown, that reinvesting dividends is more profitable the less a company's stock appreciates over time.

jank

KO has been under pressure for a while, down 10% from its peak. I cant see it go much lower however so for a long term buy its a good time to get in there. Div's will be reinvested as well, KO have an unbeatable record in that respect regarding dividends.

Value Hunter

http://www.insidermonkey.com/blog/buffett-collects-a-50-dividend-yield-from-the-coca-cola-company-ko-195665/


Keep reinvesting the dividends in more KO stock and over time you'll get a great return

In a couple more years Buffet will be getting annual dividends equal to the same amount as his initial investment was

green_bow

Pennystockwhiz wrote: »

Buffett's buy and hold approach means risking losing 50% just to get a 10% return on your capital per annum.

Yeah I heard of VHLY on Bloomberg, it's the most geographically diversified high-yield dividend ETF available on the LSE

you only loose 50% of your capital if you cut and run during a meltdown

green_bow

jank wrote: »

Very close to pulling the trigger on KO. Want it under that $38 mark. It would then be a hold for me for years and years.

ford motor company is a great buy , down from around 10% from its yearly high , terrific earnings this past year and a near 3% dividend

not as safe as KO but much higher growth potential for the next few years

Pennystockwhiz

Ford has recovered well after it was on the brink of collapse just a few years ago.. Stick with KO for the long term..

green_bow

Pennystockwhiz wrote: »

Ford has recovered well after it was on the brink of collapse just a few years ago.. Stick with KO for the long term..

any number of companies were on the brink of collapse in 2008 , ford didn't require a bailout , unlike GM

if I were buying a major blue chip , id buy general electric instead of coca cola , serious diversity in that company

gordongekko

green_bow wrote: »

ford motor company is a great buy , down from around 10% from its yearly high , terrific earnings this past year and a near 3% dividend

not as safe as KO but much higher growth potential for the next few years

im not keen on that segment. Motor companies would not be a long term buy for me.

Pennystockwhiz

GE are alot more diversified after their Capital business almost bankrupted the entire company in 2008. GE has constant dividend growth and is a great stock to add to a retirement portfolio..

Fitz123

Also like GE, fingers in lots of pies, and scaling down their finance arm to revert to being more of an industrial play.

solas111

I leave the investing to those who are much better qualified than I am but would be willing to gamble a small amount on a risky stock now and again, with the acceptance that it is perilous and could go either way.

Taking the above into consideration, what do people think about PRD Energy inc. The company has been granted a licence for what looks like a promising oil drilling area in Germany and could take off in a big way but there are many obstacles and uncertainties.

green_bow

gordongekko wrote: »

im not keen on that segment. Motor companies would not be a long term buy for me.

well you are a perma bear

not a long term buy in the way coca cola or Johnson and Johnson is but in the next two years , ford will rise by about 50% in share price , the other two may not go up more than 15%

green_bow

solas111 wrote: »

I leave the investing to those who are much better qualified than I am but would be willing to gamble a small amount on a risky stock now and again, with the acceptance that it is perilous and could go either way.

Taking the above into consideration, what do people think about PRD Energy inc. The company has been granted a licence for what looks like a promising oil drilling area in Germany and could take off in a big way but there are many obstacles and uncertainties.

never heard of them , I presume their a penny stock , most penny stocks never become nothing

id consider bank of Ireland a lot less risky than one of those exploration companies

Fitz123

solas111 wrote: »

I leave the investing to those who are much better qualified than I am but would be willing to gamble a small amount on a risky stock now and again, with the acceptance that it is perilous and could go either way.

Taking the above into consideration, what do people think about PRD Energy inc. The company has been granted a licence for what looks like a promising oil drilling area in Germany and could take off in a big way but there are many obstacles and uncertainties.

Can't say Ive heard of them either. I do keep a small % of my investments in riskier shares such as these, but if it's as you say a gamble, expect to lose everything just as much as you should expect them to double.

gordongekko

green_bow wrote: »

well you are a perma bear

not a long term buy in the way coca cola or Johnson and Johnson is but in the next two years , ford will rise by about 50% in share price , the other two may not go up more than 15%

lol no not really im fond of certain sectors including banking ( just not boi at its current level)

Pennystockwhiz

Companies drilling for natural gas and crude oil are high risk for high reward. Where did you here about the company from?

solas111

Pennystockwhiz wrote: »

Companies drilling for natural gas and crude oil are high risk for high reward. Where did you here about the company from?

Their shares are being ‘teased’ by an on-line newsletters, the Casey Energy Report, but I would not trust that source very much. However, I read an analysis on Stock GumShoe which seems to be more trustworthy and with them, the jury seems to be still out on this particular stock. The licence has actually been granted to PRD Energy GmbH, a wholly owned subsidiary of PRD Energy inc.

From Stock GumShoe: “The director who recently upped his stake to 1.2 million shares is Grant Fagerheim, who is also CEO of Whitecap Resources, a much larger ($1+ billion) Canadian producer that’s profitable and pays a dividend.”

prd energy inc (PREGF) Key Developments
PRD Energy Wins Bramstedt Exploration License in Germany
Aug 22 13

PRD Energy Inc. reports it has been awarded the Bramstedt exploration license covering approximately 162,000 acres. The license is located in the state of Schleswig-Holstein, Germany, and is within the Northwest German Basin. The license, which has been awarded to PRD Energy GmbH, a wholly-owned subsidiary of the company, is for an initial period of five years and includes all rights from surface to basement. Pursuant to the terms of the license, PRD is committed to drilling two exploration wells within the initial five-year term. The award of this license is subject to the review and approval by various municipal and state government authorities in Germany.

green_bow

gordongekko wrote: »

lol no not really im fond of certain sectors including banking ( just not boi at its current level)

your certain Ireland is doomed yet are bullish on banking

could their be a more interlinked sector globally than the financial sector , if Ireland defaults , the major wall st banks will take a hit

gordongekko

green_bow wrote: »

your certain Ireland is doomed yet are bullish on banking

could their be a more interlinked sector globally than the financial sector , if Ireland defaults , the major wall st banks will take a hit

most of our debt is owed to the ecb and as a percentage if the overall market is tiny.

Ireland is not doomed I like a lot of Irish companies just not boi at uts current level.

ranger4

gordongekko wrote: »

most of our debt is owed to the ecb and as a percentage if the overall market is tiny.

Ireland is not doomed I like a lot of Irish companies just not boi at uts current level.

What Level would boi have to reach to interest you in buying.

gordongekko

ranger4 wrote: »

What Level would boi have to reach to interest you in buying.

I have battled with that question for the last year. I felt it needed to be south of where Mr Ross invested for me to be a long term holder. And even then im not sure I could see attractions in holding it.

Pennystockwhiz

The best time to invest in BOI is NEVER.. BOI more than likely will continue to rise for a bit then collapse again.. How long can interest rates be kept this low..

ranger4

Pennystockwhiz wrote: »

The best time to invest in BOI is NEVER.. BOI more than likely will continue to rise for a bit then collapse again.." How long can interest rates be kept this low"..

Untill unemployment back at @7% as Fed and UK BOE policy has affirmed,
should see rates low for at least another 15-24 months gving ample time for Bank to recover along with SP.

Pennystockwhiz

Having excessively low interest rates for this long is a clear sign their is an economic crisis

Sonnenblumen

gordongekko wrote: »

I have battled with that question for the last year. I felt it needed to be south of where Mr Ross invested for me to be a long term holder. And even then im not sure I could see attractions in holding it.

The BoI SP has risen almost 300% in < 12 months, which part of the growth/return are you battling with?

Enjoy your time in the shade:rolleyes:

Value Hunter

Sonnenblumen wrote: »

The BoI SP has risen almost 300% in < 12 months, which part of the growth/return are you battling with?

Enjoy your time in the shade:rolleyes:

A penny stock with massive gains, must be a first in history :rolleyes:

Do you believe its a good investment at the current SP? Whats your target SP for the stock in the next 3 years?

Put it more simpler, what do you think Bank of Ireland is worth as a business? i.e your target market cap

Sonnenblumen

Value Hunter wrote: »

A penny stock with massive gains, must be a first in history :rolleyes:

Do you believe its a good investment at the current SP? Whats your target SP for the stock in the next 3 years?

Put it more simpler, what do you think Bank of Ireland is worth as a business? i.e your target market cap

If you don't believe me, take a look at the charts Columbo! I lost plenty on the way down but I'm making more on the way up. Is it a good investment, well I would be disappointed if the SP does not return annual gains +30% but I will be delighted to accept more.

As for mkt cap, well I'll leave that to the experts such as yourself.