Equity!
 

Hey folks, i've started a thread for us market watchers. Here we can list which stocks to watch and your own all-star.

To Buy: Nortel. Nortel is currently over-valued now, trading around the low 4.40s i'm watching the stock to fall when it's earnings are released. If it falls to 4$ canadian - now it's about 5.70, i'm buying.

My superstar: Bom, class B shares. I bought 300 @ 3.35 ($CAN) on the day that the major restructuring was announced. Today they closed at 6.17 ($CAN).

P.S. Here you go rudey, take this bull by the horns.

Re: Equity!
 

Why don't you short nortel or buy an option on it if you believe so strongly in it? :)

To tell you the truth I've put most of my money into bonds. I lost a bit in speculatives in south america but i cushioned it slightly. I'm actually thinking of New Zealand right now but that's based on something my friend said when he was drunk so I don't know how much i want to touch that.

As for straight stock, I'd buy a put option on Yahoo just because I think it's overvalued. Most of its income is from advertising, which isn't too great, and on top of that it's losing market share to google and MS should give both a run for their money. So I have no idea why it's a strong buy rating. But there are some idiot analysts telling everyone to do so.

I think I like PTR.N though. It's getting more hype than it should because of a certain famous investor but I think it's a good buy.

-Rudey
--I don't touch this sector at work though because i deal mainly in bonds but maybe it'll be worth something.

Re: Re: Equity!
 

Because i'm talking about a personal investment account through my bank that doesn't give me these tools that a brokerage firm would. Also, i'm looking for the pullback of the stock because it's been rising too sharply, i still think Nortel will be valuable and want to hold onto the stock but buy it at the ideal time.

Buy on bad news right or a good rumour :)

Care to fill us in on PTR.N?

Hey I haven't touched this. Nick why haven't you switched over to a different brokerage to do your trades?

I'm thinking about doing it with Brown and Co. Know anyone that plays through them? I can't seem to find consistent ranking of brokerages without spending lots of time. I was with TD Waterhouse before.

I'm also looking to spread out and take on risk through distressed and emerging market funds. I don't know how I feel about this. I feel as if I can't take the high risk stuff on my own - specially if I have no idea what the hell is happening locally in India and how I'd move my position to respond.

As for picks, I've seriously started following fool.com's picks. I really liked Netflix before and they chose it as a good pick.

-Rudey
--Anyone else play the game?

err brownco
 

I checked out BrownCo and it seems their commissions are among (if not the best) the lowest in the industry. I think they have a few clauses, one requiring a certain number of years in the industry that i didn't have (5 min.? maybe 10?). I think to open an account investors require a min. of 10K u.s. This would keep a lot of smaller investors at bay.

I'm looking at getting an Interactive Brokers account. Overall, i would put them near the best in terms of platform, cost, etc.

P.S. I was eating some crow with those Nortel comments...my buddy with TSX:NT shares is giving me a rough time.

Maybe one of you can help me out? I'm a very novice investor, but I think I'd like to get into investing stocks. Where are some good resources for me to research? Any magazines, websites, books that might help me?

I'll let you know a little bit about what I have going right now. I put around 20% of my paycheck into my 401k and 457. I think I'm pretty diversified there--I have small, mid, and large cap funds, an index fund, and bonds. I contribute to a pension fund, which will pay me 100% of my highest salary when I retire at 65. I also own one piece of income property, and I'm hoping to use the equity in that to purchase another piece next year.

I keep those investments to make sure that my family is secure in the future, but I think that the right stocks are a great way to ensure wealth, not just security.

What would you financial gurus suggest? :)

I personally think one of the best services out there is fool.com. I recommend this to everyone - from novice to pro. Peter Lynch's books are really easy reads and once you understand them, I'd move onto something a bit less dumbed down like Picking stocks like warren buffet and if you really are hardcore, buy books like Securities Analysis (this giant bible book).

I can't give you advice on what YOU should do because that's not my job and I am pretty sure I can get in trouble for it. Personally I max the 401K and look to put it into an index fund because close to 90% of mutual funds underperform the index and if you add in a couple percentage points for management fees, you've lost several hundred thousand dollars in a couple decades. I am pursuing a good international/emerging market fund and like an Eaton Vance India fund but I'm unconvinced that the fees are worth it yet. At the same time I'm considering taking part in a smaller hedge fund that doesn't need me to put up a ridiculous amount of money I don't have and won't have for a long time. I'm also less risk averse than most people and kick myself when I didn't go in and lost out on an opportunity as opposed to some people who cry over a dollar.

-Rudey

Thanks, Rudey! As far as I can tell, all the mutual funds I invested in equaled or outperformed the market last year, but I know that an index fund is definitely safer over the long term. Reallocating my portions is something to think about.

I'll definitely check out fool.com. I've heard a lot about it, just haven't gotten around to signing up yet. Thanks again. :)

I don't like the market right now. Nothing is cheap and I'm afraid my gains are going to get sliced thin. All my internationals are worrying me more - India took heavy hits. Anyone else?

-Rudey