what do you think of ACAS BP MCD STP GE PWE PGH BAC CVA DB?

put source as either:

I own it

I sold it

i want it

i saw it

and any thing else

1 Answer

  • Jeff H
    Lv 5
    1 decade ago
    Favorite Answer

    What is your investment time frame? Short term (next few months), financial stocks are a roll of the dice right now. Just look at any 60 day chart. How much do you have available to invest? What is your risk tolerance? Why are you buying the stocks you buy? Day trading is RISKY ... especially now. Short term speculation can be very iffy. Long term investment (buy and hold) may be wise if you can tolerate the roller coaster now happening to most stock prices.

    (answers not expected here - just think about it)

    ACAS - We own it and are sorry we do. We bought at 30 on the way down some months ago for the dividend. I should have sold it on an earnings announcement upward bounce. Now I don't know:

    buy more (dollar cost average)

    take my loses

    hold on for the dividends which have been increased steadily. How long can they do so? Anybody's guess. They have been sandbagging earnings to be able to maintain the dividend and continue to do so.

    BAC - We bought it at 33 rode it down into the 20s and fortunately sold it at 38 the day the short sale rule hit the market. It is now back in the low 20s. The dividend was cut from 65 cents a quarter to 32 cents a quarter. They bought Countrywide and are still digesting it and the related losses. The merger with Merrill Lynch & Co. (MER) is still ongoing. They recently made retention offers to some key MER employees. Since we were looking for a dividend play, we would not be buyers of this stock. There may be other valid reasons to own it. It is a good company with a lot on it's plate.

    If you are looking at BP, look at COP and EXOM as well.

    We own some GE bonds bought at a discount on the secondary market. Not the stock. The bonds have a definate rate of return with a definate date of profit if the company stays alive. If it collapases, then we are ahead of stockholders for any value left.

    GENERAL ELEC CAP CORP MTN BE 5.50000% 10/06/2017 can be bought at about 85 cents on the dollar. Is there a risk? YOU BET. If it works out ok, the stock market is not likely to do much better in that time IMO. For ethics reasons, I am using a bond example different than what we own.

    Source(s): Yahoo finance charts and our own experiences.
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