Value in Ford Wednesday, April 30, 2008
Posted by ei-forum in US Traded Stocks.1 comment so far
Ford (F) is getting things right and whilst it is still far away from a complete recovery, they are quickly moving in the right direction.
Most people tend to focus on their difficulties at home in the US and overlook how well they are doing abroad and how profitable the are. With this momentum and new strong products, we feel that Ford offers interesting prospects for the patient investor.
Allan Mullaly has a great track record of turning around multinationals and has considerably strengthened the management team. Furthermore, they are free to focus even more on the operational turnaround and future strategy now that the new UAW contract has been finalized.
Most investors thought that this was simply a stock to trade or a contrarian pick but the street is realizing that this could easily be a 10 dollar stock in the near future.
Currently, the stock has been pushed up also due to the Kirk Kerkorian bid but we feel that it is worth seriously considering opening a position under 8 USD.
Please read our disclaimer.
Why won’t the financial crisis end? Tuesday, April 29, 2008
Posted by ei-forum in Miscellaneous.add a comment
Jim Jubak’s perspective:
Market Expert: buy list Monday, April 28, 2008
Posted by ei-forum in Investing Humor.add a comment
Come back next Monday for more investing humor!
Investing in Russia Friday, April 25, 2008
Posted by ei-forum in ETFs.add a comment
We often hear about investing in Russia and how there are incredible opportunities despite the fact that the market has surged so much.
However, the key question is always trying to understand how to take advantage of this and in what companies to invest: investors are always skeptical about transparency, accessibility, political risk and corruption amongst other things. Wouldn’t it be better to hedge your bets and follow a basket of the top Russia publicly traded companies?
One of the best ways to tackle this investment could be through and ETF: take a look at Market Vectors Russia ETF (RSX). Despite a very good performance so far, in has recently pulled back a little and certainly has more room to grow, without charging ‘crazy’ fees – the expense ration is 0,69%, which is very reasonable for this kind of ETF.
Please read our disclaimer.
Philip Morris International Thursday, April 24, 2008
Posted by ei-forum in US Traded Stocks.add a comment
We already talked about Philip Morris International (PM) in our post on Altria (here).
Now that it is trading as a stand alone company, it can take full advantage of their strong brand and products. Again, remember that Marlboro generates more sales volume than the next 10 biggest brands in the US and current projections for the growth of world-wide cigarette consumption are for between 1 and 3% annually for the next two decades or so. Furthermore, it appears that they are close to recieving the final go-ahead for China, which makes the US market look small!
Please read our disclaimer.
George Soros: current situation, part 2 Wednesday, April 23, 2008
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Here is the second part of the speech where Soros continues to explain how financial institutions gained too much freedom, going back to the unbalances caused by the oil prices in the 70s and Long Term Capital Management.
He focuses on the fact that markets are NOT self correcting and that regulators should understand this and make a real effort to understand the root-cause of problems when intervening and making sure they regulate to avoid systems from collapsing.
The bottom line is that despite the regulators doing all they can to save the system, this will not solve the inherent problem of liquidity and counter party risk – they have to understand how the system works and keep asset bubbles within limits, accepting that this is their mandate.
George Soros: current situation, part 1 Tuesday, April 22, 2008
Posted by ei-forum in Miscellaneous.add a comment
This is the first part of a very interesting speech by George Soros on the current situation and the HOWs and the WHYs of the current economic situation: the credit crunch and market fundamentals.
He talks about false conceptions in the market and on products that went from triple A rating to worthless in just a matter of months. He explains bubbles and how misinterpretations of trends lead to a initially self reinforcing but ultimately defeating boom-bust processes.
Downsides in the bubbles are always more brutal that the upside potential and it is very important to understand the dynamics at work in order to be able to deal with them. Furthermore, when these bubbles burst, they expose and highlight all of the other weaknesses in the system that had been overlooked during the boom period.
Tomorrow, we will look at the second part of this speech.
Dilbert: give me your money Monday, April 21, 2008
Posted by ei-forum in Investing Humor.add a comment
Come back next Monday for more investing humor!
Stock market roller coaster Friday, April 18, 2008
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Despite the recent strength in the markets and that fact that this rally might hold up, we couldn’t help but think of the current situation when we came across this cartoon.
We are slowly managing to have a clearer picture of the real impact recent events are having on corporate players but we still believe that any non-expected negative comment by one of the major financial institutions (or even another major corporation – see what happened with GE) would quickly cause the market to test recent bottoms.
We remain on the lookout for value but are still not convinced by the apparent recovery.
Standing behind GE Thursday, April 17, 2008
Posted by ei-forum in US Traded Stocks.add a comment
Once again, following the market sell-off, insiders are standing behind GE and using these opportunities to increase their holdings. This Monday, April 14th:
- Vice-Chairman Michael Neal spent $1 million on 31,250 shares @ $32.16.
- Director Ralph Larsen spent $479,000 on 15,000 shares @ 31.90.
- Director Robert Swieringa spent $32,000 on 1,000 shares @ 31.96.
As the GE statement points out: “It’s an expression of confidence in the company”.
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